Q2 2027 Gen Digital Inc Earnings Call
Speaker #1: Operator today. Today's call is being recorded, and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.
Speaker #1: At this time, for opening remarks, I would like to pass the call over to Ben Lu, Head of Investor Relations.
Speaker #2: Thank you, Jen, and good afternoon, everyone. Welcome to Jen's second quarter fiscal year 2027 earnings call. Joining me today are Vincent Pilette, CEO, and Natalie Derse, CFO.
Speaker #2: As a reminder, there will be a replay of this call posted on the Investor Relations website, along with our slides and press release. I'd like to remind everyone that during this call, all references to the financial metrics are non-gap and all growth rates are year-over-year.
Speaker #2: A reconciliation of non-gap to gap measures is included in our press release and earnings presentation, both of which are available on our IR website at investor.gendigital.com.
Speaker #2: We encourage investors to monitor this website as we post investor-oriented information such as news, events, and financial filings. Today's call contains statements regarding our business, financial performance, and operations, including impact on our business and industry that may be considered forward-looking statements, and such statements involve risk and uncertainties that may cause actual results to different materially from our current expectations.
Speaker #2: Those statements are based on current beliefs, assumptions, and expectations as of today's date, October 28, 2026. We undertake no obligation to update these statements as a result of new information or future events.
Speaker #2: For more information, please refer to the cautionary statements in our press release and the risk factors in our filing with the SEC, and in particular, our most recent reports are Form 10-K and Form 10-Q.
Speaker #2: And now, I will turn the call over to Vincent.
Speaker #3: Thanks, Ben, and good afternoon, everyone. Q2 was another beat-and-race quarter for Jen. Our revenue and bookings grew double digits, and non-gap EPS increased 19% year-over-year.
Speaker #3: Our cybersafety foundation continues to be strong, while trust-based solutions are fueling our next phase of profitable growth. We ended the quarter with 83 million paid customers, up 2 million sequentially and 6 million from a year ago, and with this momentum, we are raising, again, our full-year guidance.
Speaker #3: Cybersafety revenue grew 5%, led by the adoption of comprehensive memberships and continued customer upsells and upgrades. Lowering 360, our flagship product, provides the broadest, most advanced protection for consumers, in the market, and has scaled to over 1.7 billion run rates growing consistently at or above mid-single digit.
Speaker #3: We also continue to deploy our customer lifecycle playbook, delivering the highest renewal lift in several quarters. Trust-based solutions grew 26%, driven by financial wellness adoption and engine diversified partner and vertical strategy.
Speaker #3: Partner channels grew double digits in both segments, as carriers and employers increasingly embed our full suite protection into their solutions, and our marketplace continues to expand its partnership and distribution.
Speaker #3: These results advance our mission to protect digital lives and help people manage financial needs online. The team at Jen has long prided itself on driving our business with discipline and creating lasting value.
Speaker #1: Thank you for standing by. My name is Good afternoon, everyone. Thank you for standing Jenny. by. My name is Jen, and I Today's call is being recorded, and will be your conference operator all lines have been placed on mute to today.
Speaker #3: That means we manage for durable growth and profitability. We invest where customers demand and returns are the strongest. We constantly improve efficiency and apply shared capabilities across the entire portfolio.
Speaker #2: Thank you, Jen. And good afternoon, everyone. Welcome to Jen's second quarter
Speaker #3: This operating model delivers best-in-class margins in our segments, 62% in cybersafety, and 30% in trust-based solutions, for a 50% blended margin this quarter. In financial wellness, we are focused on margin quality as we scale, simplifying pricing, routing more advances to our own spend accounts, and shifting engine mix towards higher margin first-party demand.
Speaker #3: The different profiles of our two segments fund continued investments and support our mid-to-high teams' EPS growth outlook for fiscal year 27. And we see plenty of opportunities to apply our model.
Speaker #2: We encourage investors available on our IR website at to monitor this website as we post investor.gen-digital.com. We investor-oriented information such as encourage investors to monitor this website news, events, and financial as we post investor-only information filings.
Speaker #2: Today's call such as news, events, contains statements regarding our business, financial and financial performance, and operations, including findings. Today's call contains statements regarding our impact on our business and industry that may be business, financial performance, and considered forward-looking statements, and such operations, including impact on our business and statements involve risk and uncertainties that may industry, and may be considered forward-looking cause actual results to different statements, but such statements involve risk and materially from our current uncertainties and may cause actual results to expectations.
Speaker #3: Looking ahead to the second half, we are prioritizing our efforts where customer demand and flywheel economics are strongest. We are redesigning Northern 360 with next-gen VPN, scam protection, and safe AI.
Speaker #2: Those statements are based on current different maturities from a fair beliefs, assumptions, and expectations as of expectation. Those statements are based today's date, October 28, on current beliefs, assumptions, and 2026.
Speaker #3: We're building new lifelock experiences that connect breach alerts with on-demand AI-driven resolution. And we are expanding money line customer acquisition with a focus on monthly active users, higher income cohorts, and a deeper product relationship.
Speaker #1: Today's call is being prevent any background recorded, and all lines have been placed noise. After the speaker's remarks, there will be a on mute to prevent any background question-and-answer session.
Speaker #2: We undertake no expectations as of today's date, obligation to update these statements as a result October 28, 2026. of new information or future We undertake no obligation to update these events.
Speaker #1: After the speaker's opening remarks, there will be a question-and-answer session. At this time, I would like to pass the call over to the speaker for their remarks.
Speaker #2: For more information, please refer to the statements as a result of new information or cautionary statements in our press release and the risk future events.
Speaker #1: At this time, some Ben Liu, Head of Investor opening remarks: I would like to pass the call over to Ben Liu, Head of Relations.
Speaker #3: Early results are encouraging. Northern 360 better user engagement increased double digits, and lifelocks redesigned sites lifted mobile conversion also by double digits. We are relentlessly enhancing our portfolio because people increasingly need help.
Speaker #1: Investigations.
Speaker #2: And now, I will turn the call over to report to our firm on gaps and Form Vincent.
Speaker #3: Thanks, Ben. And good
Speaker #2: Thank you. Fiscal year 2027 earnings, Jen. Welcome to the call. Joining me today are Vincent Pilette, CEO, and Natalie Derse. Earnings call.
Speaker #3: afternoon, everyone. Q2 was
Speaker #2: Joining me today CFO. As a reminder, there will be a are Vincent Pilette, Q4, and replay of this call posted on the Investor Natalie Derse, Head of Quality.
Speaker #3: AI makes sophisticated attacks easier to launch, and harder to distinguish. The recent PHP vulnerabilities show how advanced AI is accelerating vulnerability exploitation, from discovering flaws to turning long-standing weaknesses into practical exploits across digital services, consumers rely on every day.
Speaker #2: As a Relations website, along with our slides and reminder, there will be a replay of this call posted press release. I'd like to remind everyone on the Investor Relations website, along that during this call, all references to the with our slides and text materials.
Speaker #2: I'd financial metrics are non-gap and all growth rates like to remind everyone that during this call, all are year-over-year. A references to the financial metrics beyond gaps reconciliation of non-gap to gap measures is and all growth rates are year over included in our press release and earnings year.
Speaker #2: Any reference related to non-gap-to-gap presentation, both of which are available on our measures has included in our press release that earnings IR website at presentation 4 quarters are investor.gendigital.com.
Speaker #3: Our latest threat report found scams made up more than half of everything we blocked, attacks grew more personal and local, from family impersonation texts to AI-generated scam videos in local language.
Speaker #3: Lowering 360, our continued customer upsells and flagship product, provides the upgrades. More than broadest, most advanced protection for 360 are flagship products, providing consumers in the market and has scaled the broadest, most advanced to over 1.7 billion protection for consumers, in the run rates growing market, and have scaled to over consistently at or above rectangle 1.7 billion runways growing digits.
Speaker #3: Our real-time telemetry shows email, text, and call scam protection up 30% sequentially. And now, as consumers adopt AI and give agents their credentials, each interaction creates risks that consumers feel, even if many don't understand or know how to control them.
Speaker #3: We consistently at or above also continue to deploy our customer the single lifecycle playbook, delivering the digit. We also continue to deploy our highest renewal lifts customer lifecycle framework, in several delivering the highest quarters.
Speaker #3: Identity faces the same trend. Breach notices to our members rose more than 6-fold in the first half, and US notices in the first 6 months of 26 exceeded all of 25.
Speaker #3: Trust-based solutions renewal list in several grew 26%, driven quarters. Trust-based by financial wellness adoption solutions include and engine diversified 26%, driven by financial wellness partner and vertical adoption and engine strategy.
Speaker #2: For more information, factors in our filing with the SEC, and in please refer to the cautionary statements in our press particular our most recent reports of Form release and the risk factors in our filing with 10-K and Form SEC, and in particular our most recent 10-Q.
Speaker #2: 10-Q. For now, I will turn the
Speaker #3: Partner channels grew diversified partner and vertical double digits in both strategy. Partner segments, as carriers and channels grew double digits in employers increasingly embed our both segments, as carriers full suite protection into and employers increasingly their solutions and our embed our full risk marketplace continues to expand its partnership protection into their solutions and and our marketplace continues to expand distribution.
Speaker #3: People increasingly assume their data is already exposed, feel helpless, and basically tune out alerts. So we are connecting breach alerts to on-demand AI-driven resolutions, giving them a clear and actionable next step.
Speaker #2: call over to Vincent.
Speaker #3: Thanks, another beat-and-race quarter for Ben. And good afternoon, Jen. Our revenue and bookings everyone. Q2 was another meat-and-race grew double digits, and non-gap quarter for Jen.
Speaker #3: I'll welcome you EPS increased on booking. We'll double 19% year-over-year. Our digits, and non-gap EPS increased cybersafety foundation continues to be 19% year over strong, while trust-based year.
Speaker #3: AI also raises a question of trust: can I trust the person, the message, the action, the agent? Jen combines threats, identity, and financial intelligence with trusted permission customer relationships, delivering more relevant protection.
Speaker #3: Our cybersafety foundation solutions are fueling our next phase continues to be strong, while of profitable growth. trust-based solutions is fueling We ended the quarter with 83 our next phase of profitable million paid customers, up 2 growth.
Speaker #3: These results advance our its partnerships and mission to protect digital lives and distribution. These help people manage financial needs results are in submission to protect digital online.
Speaker #3: We ended the quarter million sequentially, and 6 million from a with 83 million paid year ago. And with this customers, up 2 million to March and 6 momentum, we are raising, million from a year ago.
Speaker #3: That means we manage for business with discipline, creating durable growth and lasting value. That means profitability. We invest where we manage for durable growth customers demand and returns are the and profitability.
Speaker #3: As threats grow more complex and more personal, the breadth of our signals and intelligence becomes an even greater advantage giving us the unique ability to power consumers' trusted moments.
Speaker #3: And again, our full-year with this momentum, we are guidance. Cybersafety raising again our secure revenue grew 5%, led guidance. by the adoption of comprehensive Cybersafety revenue grew memberships and continued customer 5%, despite the adoption of upsells and comprehensive memberships and upgrades.
Speaker #3: This operating apply shared capabilities across the model delivers best-in-class entire portfolio. margins in our segments, This operating model delivers 62% in cybersafety, best-in-class margins in our and 30% in trust-based segment, 62% in solutions, for a 50% blended cybersafety, and 30% in margin this trust-based solutions, for a quarter.
Speaker #3: Leveraging that intelligence, our product strategy follows clear customer needs. Let's take financial wellness for example. Even in a resilient economy, nearly 1 in 4 American households spend almost all of its income on necessities.
Speaker #3: In financial wellness, we 50% brand margin this are focused on margin quality as quarter. In financial we scale, simplifying wellness, we're focused on margin pricing, writing more advances to quality as we scale, our own spend accounts, and simplifying pricing, driving shifting engine mix toward higher more advanced to our own spend margin first-party accounts, and shifting engine mix demand.
Speaker #3: These families, do not need another lender. What they need is an easier way to understand manage their cash flow and a safe way to bridge a gap.
Speaker #3: Unreach access is where money line delivers that value. Building upon that trusted entry door, we offer a cash flow assistance that shows member what it's safe to spend before the next paycheck.
Speaker #3: The different profiles of toward higher margins for strategy our two segments fund demand. The continued investments and support different parts of our two our mid to high teams' EPS growth segments continue investment and outlook for fiscal year support our mid-to-high-team EPS growth outlook for 27.
Speaker #3: Money Lion Safe, our first interest-bearing premium deposit product, now gives them a place to grow their money. And as they build their financial strength, credit builder and identity protection offer core benefits as part of our Money Lion One membership.
Speaker #3: And we see plenty of opportunities to fiscal year apply our model. Looking ahead to the 2027. And we see plenty of second half, we are prioritizing opportunities to apply our model.
Speaker #3: our efforts where customer demand and Looking ahead to the second half, we flywheel economics are are prioritizing our efforts where strongest. We are redesigning more than customer demand and private economics are 360 with next-gen strongest.
Speaker #3: Together, these features evolve Money Lion into a daily financial relationship where each interaction is improving the next recommendation, with a full-feature set of secure personal financial management solutions.
Speaker #3: lives and help people manage The team at Jen has long prided financial needs itself on driving our business with online. The theme at Jen has discipline and creating lasting long prided itself on driving our value.
Speaker #3: This is why the vast majority of Money Lion revenues come from repeat customers, making our PFM solution a durable and valuable part of consumers' financial lives.
Speaker #3: We strongest. We constantly invest where customers demand and returns improve efficiency and apply shared are the strongest. capabilities across the entire We constantly improve efficiency and portfolio.
Speaker #3: Lowering product 360 better user engagement, increased relationship. Early results are double digits, and lifelocks encouraging: more than 360 better user redesigned sites lifted mobile engagement increased double digits, and conversion also by double laptops redesigned sites lifted mobile conversion also digits.
Speaker #3: Our roadmap is bringing technologies and capabilities together in valuable memberships. And now our distribution is helping us meet demand where it is. With more than half of workers saying financial stress is hurting their productivity, most employers are looking to add benefits to help.
Speaker #3: We are relentlessly enhancing our by double portfolio because people increasingly digits. We are need help. AI makes relentlessly enhancing our portfolio because sophisticated attacks easier to people increasingly need help.
Speaker #3: launch, and harder to AI makes sophisticated attacks easier distinguish. The recent PHP to launch, and hard to vulnerabilities show how advanced distinguish. The recent AI is accelerating PHP vulnerabilities show vulnerability exploitation, how advanced AI is from discovering flaws to accelerating vulnerability turning long-standing weaknesses into exploitation, from discovering practical exploits across flaws to turning longstanding digital services consumers rely on weaknesses into practical exports every across digital services, day.
Speaker #3: Northern Money Workplace brings financial wellness to the employee benefit channel already used by Northern and Lifelock. Recently launched, it's qualified pipeline already exceeds 30 million dollars ahead of the enrollment season.
Speaker #3: Our latest thread report on consumers rely on every scams made up more than half of everything we day. Our latest threat blocked, attacked through more report funds scams made up more than personal and local, from half shares being blocked family impersonation texts to thanks to more personal and AI-generated scam videos in local local from family impersonation texts language.
Speaker #3: So serving more needs, reaching people where they are, and connecting protection with financial empowerment make our products easier to find, more useful, and more connected than ever before.
Speaker #3: Our real-time to AI-generated scam videos in telemetry shows email, text, and local language. Our call scam protection up real-time telemetry shows email, 30% sequentially.
Speaker #3: That is the flywheel that we are building. Better products and experiences deepen engagement and trust, with customers' permission, relevant context across the platform makes protection and financial tools more useful and personal.
Speaker #3: We are VPN, scam protection, and safe redesigning model 360 with AI. We're building new next-gen VPN cam protection lifelock experiences that connect breach and safe AI.
Speaker #3: And text, and call scam now, as consumers adopt AI and give protection up to 30% agents their credentials, each functional. And now, as consumers adopt interaction creates risks that AI and get agents their consumers feel, even if credentials, each interaction creates many don't understand or know how to risk that consumers feel control even if many don't understand or them.
Speaker #3: We're alerts with on-demand AI-driven building new lines of expenditures that resolution. And we are connect breach alerts with expanding money line customer full-demand AI-driven acquisition with a focus on monthly active resolutions.
Speaker #3: Deeper relationships lets us serve more of our customers' digital life, and we continue to see proof of this in our business. The embedded financial wellness synergies remain on track, engineering is active across many gen partnerships, AI-driven remarketing is scaling cross-sell, and demand for new products like Northern Money Workplace are all contributing to our confidence as we 28.
Speaker #3: And we are expanding online users, higher income customer acquisition with a focus on cohorts, and a deeper product monthly active users, relationship. higher-income cohorts, and a deeper Early results are encouraging.
Speaker #3: Identity faces the know how to control same trend. Breach them. notices to our members rose more than Identity faces the same 6-fold in the first half, threat: breach notices to our members, and US notices in the first 6 months plus more than 6 holds in the first of 26 exceeded all of half, and US notices in the 25.
Speaker #3: People, in the first 6 months of 2026, increasingly assume their data is already exposed, feel helpless, and tune out alerts. By 2025, people increasingly assume their data is basically already exposed, and they tune out alerts.
Speaker #3: So we are connecting breach alerts helpless, and basically feel out of to on-demand AI-driven resolution, giving them a clear and
Speaker #3: Our momentum across the business and the proof points of our platform-driven synergies give us the confidence that we can deliver long-term sustainable growth. Our mission is to power digital freedom, which means powering trusted moments in our customers' digital lives, helping them protect what matters and moving forward online with confidence.
Speaker #3: actionable next step. AI also raises a question of trust: can I trust the person, the message, the action, the agent?
Speaker #3: Jen combines threats, identity, and financial intelligence with trusted permission customer relationships, delivering more
Speaker #3: relevant protection as threats grow more complex and more personal. The breadth of our signals and
Speaker #3: Digital life now touches every aspect of how people live, work, and manage their finances. AI is accelerating that shift, making decisions and acting on people's behinds.
Speaker #3: intelligence becomes an even greater advantage giving us the unique ability to power
Speaker #3: consumers' trusted moments. Leveraging that intelligence, our product
Speaker #3: As life online grows more complex, trust matters more. Our strategy is to expand from protecting digital life to empowering it for prosperity. Three connected roads: protect, empower, and prosper.
Speaker #3: needs. Let's take financial
Speaker #3: Wellness, for example. Even in a resilient economy, nearly 1 in 4 American households spend
Speaker #3: almost all of its income on necessities. These families do not need another lender. What they need is an easier way to understand, manage their cash flow, and a safe way to bridge a gap.
Speaker #3: We protect people's device, data, identity, privacy, and financial accounts. We empower them with greater control over their identity, reputation, and financial wellness. And we help them prosper with better opportunities, smarter recommendations, and easier transactions.
Speaker #3: Unreached access is where money
Speaker #3: line delivers that value. Building upon that trusted entry door, we offer a cash flow assistance that shows members what it's safe to
Speaker #3: Each trusted moment earns us the permission to support more aspects of their digital lives. That strategy runs on one gen platform. Across our brands and services, we reach 500 million users and endpoints, connect nearly 120 million financial accounts, and work with more than 1,300 partners across 25 verticals.
Speaker #3: spend before the next paycheck. Money Lion Safe, our first interest-bearing premium deposit product, now gives them a place to grow their money. And as
Speaker #4: We are connecting breach alerts to on-demand AI-driven resolution, giving them a clear and actionable next step.
Speaker #3: they build their financial strength, credit builder and identity protection offer core benefits as
Speaker #3: part of our Money Lion One Builder and Identity Protection offer core benefits as part of our Moneyline One membership. membership. Together, these features evolve Money Lion into a daily financial relationship where each interaction is improving the next recommendation with a
Speaker #4: AI also raises a question of trust. Can I trust the person, the message, the action, the agent?
Speaker #3: Our shared intelligence uses permission context to improve protection, personalization, and recommendation, with seeing that in our customer outcomes. Our Northern cross-sell penetration neared 30%, and our AI recommender lifts revenue from new Northern cross-sells by mid-single digit.
Speaker #4: This combines threat, identity, and financial intelligence with trusted permission customer relationships, delivering mobile-level protection.
Speaker #3: full-feature set of secure
Speaker #3: personal financial management solutions. This is why the vast majority of Money Lion revenues come from repeat customers, making our PFM solution a durable and
Speaker #4: As threats grow more complex and more personal, the breadth of our signals and intelligence becomes...
Speaker #3: Our AI decisioning agent that re-engage abandoned applicants now has its own bookings target. And we are in the early stages; the platform potential is significant.
Speaker #4: an even greater advantage, giving us a unique ability to power consumers' trusted moments.
Speaker #3: valuable part of consumers' financial lives. Our roadmap is bringing technologies and capabilities
Speaker #4: Leveraging that intelligence, our product strategy follows your customer needs.
Speaker #3: together in valuable memberships. And now, our distribution is
Speaker #3: Our AI strategy has grown from one assistant to three connected layers. First, AI builds into our products, second, protections for people using AI and their agents, and third, a trusted infrastructure so those agents can transact safely.
Speaker #3: helping us meet demand where it is. With more than half of workers saying financial stress is hurting their productivity, most employers are looking to add benefits
Speaker #4: Let's take financial wellness, for example.
Speaker #4: Even in a resilient economy, nearly 1 in 4 American households spend almost all of its income on necessities.
Speaker #3: to help. Norton Money Workplace brings financial wellness to the employee benefit channel already used by Norton and
Speaker #4: These families do not need another lender. What they need is an easier way to understand and manage their cash flow, and a safe way to bridge the gap, on which Access...
Speaker #3: One platform powers all three, with protection and customer control at its core. Genie, our first AI-native product, started with a simple focus: protecting against scams.
Speaker #3: Lifelock. Recently launched, it qualified pipeline already exceeds 30 million dollars ahead of
Speaker #4: is where Moneyline delivers that value.
Speaker #4: Building upon that trusted entity role, we offer a cash flow assistant that shows members what it's safe to spend before the next paycheck.
Speaker #3: the enrollment season. So serving all needs, reaching people where they are, and connecting protection with financial empowerment make our
Speaker #3: Today, Genie uses context from across gen to guide people on safety, identity, and financial wellness. The same foundation now powers other AI-native products, such as Northern Neo, with agentic VPN, and Northern Family Assistant.
Speaker #4: Moneyline and SAFE, our first features offering premium deposit products, now give them a place to grow their money. And as they build their financial strength, credit...
Speaker #3: products easier to find, more useful, and more connected than
Speaker #3: ever before. That is the flywheel that we are building. Better products and experiences
Speaker #3: deepen engagement and trust, with customers' permission, relevant context across the platform makes protection and financial tools more useful
Speaker #3: The second layer became urgent this quarter: agentic AI for consumers moved from prediction to reality. Personal agents from major platforms reach millions within weeks, with access to emails, passwords, and money.
Speaker #4: Together, these features evolve Moneyline into a daily financial relationship where each interaction is improving the next recommendation with a full feature set
Speaker #3: and personal. Deeper relationships let us serve more of our
Speaker #3: customers' digital lives, and we continue to see proof of
Speaker #4: of secure personal financial management solutions.
Speaker #3: Soon after, researchers showed how that access could be turned against users where an agent becomes an insider threat, if left unprotected. We pioneered agent Trust Hub to address these risks.
Speaker #3: This business: the embedded financial wellness synergies remain on track, engineering is active across many Gen partnerships, and AI-driven remarketing is scaling.
Speaker #4: This is why the vast majority of Moneyline revenues come from repeat customers, making our PFM solution a durable and valuable part of consumers' financial lives.
Speaker #3: cross-sell, and demand for new products like Norton Money Workplace are all contributing to our confidence as we ramp through
Speaker #3: It screens skills before use, monitors agents and adds protection to a sandbox safe zone with legal scans across LLM answers. Skills that have been scanned and marked safe by our technology in the leading agent marketplace have been installed over 100 million times by users and their agents.
Speaker #4: Our roadmap is bringing technologies and capabilities together in valuable memberships.
Speaker #3: second half and fiscal year 28. Our momentum across the business and the proof points of our platform-driven synergies give us the confidence that we can deliver
Speaker #4: Distribution is helping us meet demand where it is.
Speaker #4: With more than half of workers saying financial stress is hurting their productivity, most employers are looking to add benefits to help.
Speaker #3: long-term sustainable growth. Our mission is to power digital freedom, which means powering trusted moments in our customers' digital lives, helping them protect
Speaker #3: The latest Northern 360 release also brings these capabilities into safe AI, addressing customer top questions: how do I keep my AI agents in check?
Speaker #4: Norton Money Workplace brings financial wellness to the employee benefit channel already used by Norton and Lifelock.
Speaker #4: Recently launched, its qualified pipeline already exceeds $30 million ahead of the enrollment season.
Speaker #3: What matters is moving forward online with confidence. Digital life now touches every aspect of how people live.
Speaker #3: The third layer is just beginning. This holiday season, agents will shop and pay for people, but the liability when they get it wrong remains unclear.
Speaker #4: So serving more needs, meeting people where they are, and connecting protection with financial empowerment make our products easier to find, more useful,
Speaker #3: work, and manage their finances. AI is accelerating that shift, making decisions and acting on
Speaker #3: Financial institutions face the same challenges. Some block outside agents, others are opening up. Both need infrastructure for consent, eligibility, compliance, and fraud. Engine is building that infrastructure inside our marketplace modules.
Speaker #3: people's behind. As life online grows more complex, trust matters more. Our strategy is to expand from protecting digital life to empowering it for
Speaker #4: and more connected than ever before.
Speaker #4: That is the flywheel that we are building— better products and experiences and engagement in products.
Speaker #3: prosperity. Three connected
Speaker #3: Roads: protect, empower, and prosper. We protect people's devices, data, identity, and privacy, and
Speaker #4: Customers' information and relevant context across the platform make protection and financial tools more useful than ever.
Speaker #3: Engine launched the first interim shopping experience built for AI agents in September, and Molly Lyon already uses Engine to help people and their agents compare savings products.
Speaker #3: financial accounts. We empower them with greater control over their
Speaker #4: Deeper relationships let us serve more of our customers' digital lives.
Speaker #3: identity, reputation, and financial wellness. And we help them prosper with better opportunities, smarter
Speaker #4: And we continue to improve on this in our business.
Speaker #3: Our gen lab has more to come as the market evolves. Some of you have asked me whether personal agents reduce the need for what we do.
Speaker #3: recommendations, and easier transactions. Each trusted moment earns us the permission to
Speaker #4: The embedded financial wellness synergy remains on track. We do investments across many partnerships. AI-driven remarketing is scaling up right now, and demand
Speaker #3: support more aspects of their digital lives. That strategy runs
Speaker #3: Data points the other way. AI and agents create more ways for threats to reach consumers. And as people adopt these tools, the need for safety and trust grows with them.
Speaker #4: for new products like World Money Workplace are all contributing to our confidence as we ramp through second half and to fiscal '28.
Speaker #3: on one Gen platform. Across our brands and services, we
Speaker #3: endpoints, connect nearly 120 million financial accounts, and work with more than 1,300
Speaker #3: We don't expect agentic capabilities to contribute materially to revenue in this fiscal year, but this is about positioning gen for the next decade of digital trust that will be decided.
Speaker #4: Our momentum across the business and the key point of our platform-driven synergy give us the confidence that we can deliver long-term sustainable growth.
Speaker #3: partners across 25 verticals. Our shared intelligence uses permission context to improve protection, personalization, and
Speaker #4: Our mission is to power digital freedom, which means powering trust and wellness in our customers' digital lives, helping them protect what matters and moving
Speaker #3: Before I close, I want to address capital allocation and M&A. Our first priority is investing organically where customer needs are and returns are strongest.
Speaker #3: recommendation. We're seeing that in our customer outcomes. Our Norton cross-sell penetration neared 30%, and our AI recommender lifts revenue from new Norton
Speaker #3: cross-sells by mid-single digit. Our AI decisioning agent that re-engages abandoned
Speaker #3: We have built a durable business that generates nearly $2 billion in annual free cash flow, and we return excess cash through share buyback or debt repayment while maintaining a strong balance sheet.
Speaker #4: Digital life now touches every aspect of how people live, work, and manage their finances.
Speaker #3: Applicants now has its own bookings. Our AI decisioning agent that re-engages abandoned applicants now has its own bookings target. And we are in the early stages; the platform...
Speaker #4: AI is accelerating that shift, making decisions in real time.
Speaker #3: That framework has not changed. What also has not changed is that M&A remains part of our growth strategy and an accelerator to furthering our mission.
Speaker #3: potential is significant. Our AI strategy has grown from one assistant to three connected layers, first AI-built into our
Speaker #4: As life online grows more complex, trust matters more. Our strategy is to expand from protecting digital life to empowering it for prosperity. 3 connected goals.
Speaker #3: We continuously assess consumer needs, engage with companies, and explore opportunities to expand capabilities and reach. But our organic plan stands on its own, and our outlook for this year and the next does not depend on an acquisition.
Speaker #4: Connect with our ecosystem.
Speaker #3: products, second protections for
Speaker #4: We protect people's device, data, identity, privacy, and financial accounts.
Speaker #3: agents, and third, a trusted infrastructure so those agents can
Speaker #4: We empower them with greater control over their identity, reputation, and financial wellness.
Speaker #3: transact safely. One platform powers all three, with protection and customer control at
Speaker #4: And we help them prosper with better opportunities, smarter recommendations, and easier transactions.
Speaker #3: Whether we build, partner, or acquire, each decision must stand on its merit and return on invested capital. In line with our track record, we stay disciplined and act in the long-term interest of our shareholders.
Speaker #3: At its core, Genie, our first AI-native product, started with a simple focus: protecting against scams. Today, Genie uses context from across Gen to guide people on
Speaker #4: Each trusted moment earns us the permission to support more aspects of their digital lives.
Speaker #4: That strategy runs on one Gen platform.
Speaker #3: safety, identity, and financial wellness. The same foundation now powers other AI-native products, such as Norton Neo, with
Speaker #4: Across our brands and services, we partner with end users and endpoints to make sure
Speaker #3: We don't comment on specific targets or rumors. Out of respect for our strategic work and the business partners we engage with. But to avoid any misunderstanding, let me be clear: we are not working on a transformative acquisition today.
Speaker #4: nearly 120 million financial accounts and work with more than 1,300 partners across 25 verticals.
Speaker #3: agentic VPN, and Norton The same foundation now powers other AI-enabled products, such as Northern Neo, which is a genetic VPN, and Northern Family. Family Assistant.
Speaker #3: The second layer became urgent this quarter: agentic AI for consumers moved from prediction.
Speaker #4: Our shared intelligence uses permission to improve protection, personalization, and recommendations.
Speaker #3: to reality. Personal agents from major platforms reach millions within weeks, with access to
Speaker #3: The gen team remains focused on serving customers, improving our products, and building for the AI era. We have strengthened our growth model by focusing on customer needs, connecting our capabilities on one platform, and investing with discipline.
Speaker #5: We've seen that in our customer outcomes. Our loan and cross-sell penetration nears 30%, and our AI recommender lifts revenue from new loan and cross-sell by multiple digits.
Speaker #3: emails, passwords, and money. Soon after, researchers showed how that access could be turned against users where an agent becomes an insider threat, if left
Speaker #3: unprotected. We
Speaker #3: pioneered agent Trust Hub to address We pioneered using trust patterns to address these risks. these risks. It screens skills before use, monitors agents and adds protection to a sandbox safe zone with legal scans
Speaker #3: In the second half, we will demonstrate once again that we can keep doing all three. I'm confident in our team, our plan, and our ability to deliver.
Speaker #5: And we are in the early stages. The platform potential is significant.
Speaker #3: across LLM answers. Skills that have been scanned and marked safe by our technology in the leading agent marketplace have been installed over 100 million times
Speaker #3: So thank you to the gen team for bringing this mission to life every day. And with that, let me turn it over to Natalie to walk you through the financials.
Speaker #4: Our AI strategy has grown from one application to 3 connected layers. First, AI built into our product and protection solutions.
Speaker #1: Thank you, Vincent, and hello, everyone. For today's call, I will go through our Q2 fiscal 2027 results and our raised outlook for full-year fiscal 2027.
Speaker #3: by users and their agents. The latest Norton 360 release also brings these capabilities, into safe AI, addressing customer top questions: how
Speaker #4: Using AI and the agent.
Speaker #4: Third, trusted infrastructure, so this agent can transact safely.
Speaker #1: I will focus on non-GAAP financials and adjusted year-over-year growth rates unless otherwise stated. Now, on to our results. We delivered another strong quarter with our key metrics all up double digits from revenues to operating income to EPS to free cash flow.
Speaker #4: One platform powers all 3 with protection and customer control.
Speaker #3: do I keep my AI agents in check? The third layer is just
Speaker #4: We, our first AI-enabled product, started with a single focus: protecting the end client. Today, we use it to guide people on safety, identity,
Speaker #3: beginning. This holiday season, agents will shop and pay for people, but the liability when they get
Speaker #3: it wrong remains unclear. Financial institutions face the same challenges. Some block outside agents, others are
Speaker #1: Our Q2 revenue grew 12% to $1.37 billion, beating the high end of our guidance. Our bookings were up 10% to $1.35 billion, and marked the sixth consecutive quarter of double-digit growth with consistent growth across both our cybersafety and trust-based solutions segments.
Speaker #3: opening up. Both need infrastructure for consent,
Speaker #3: eligibility, compliance, and fraud. Engine is building that
Speaker #4: Second layer between search and discover: a genetic AI for consumers to move from prediction to reality.
Speaker #3: infrastructure inside our marketplace modules. Engine launched the first internal shopping experience built for AI agents in September, and Molly Lyon already uses Engine to
Speaker #4: Personal agent on major platforms, which millions use in weeks, with access to email, passwords, and money.
Speaker #1: Not only did revenues come in better than expected, we delivered that upside with strong incremental operating drop-through, with operating profit dollars up 10%. Operating margin for the quarter was consistent at 50%, even as we continue to invest in multiple initiatives across product and marketing.
Speaker #3: help people and their
Speaker #3: Agents compare savings products. Our Gen Lab has more to come as...
Speaker #4: Soon after, researchers showed how that access could be turned against humans, where an agent becomes an insider threat and threatens unprotected
Speaker #3: the market evolves. Some of you have asked me whether personal agents reduce the need for what we do. Data points the other way. AI and agents
Speaker #4: Screen skills before use, microagents, and ad protection to a sandbox safe zone with legal scans across LLM answers.
Speaker #3: create more ways for threats to reach consumers. And as people adopt these tools, the need for safety
Speaker #1: The continued strength in our business gives us confidence that our solutions and products are serving our customers' needs and pain points, and sets up the momentum for us to lean into our investments in the second half.
Speaker #3: and trust grows with them. We don't expect agentic capabilities to contribute materially to revenue in this fiscal year, but this is about positioning gen for the
Speaker #4: Skills that have been scanned and marked safe by our technology in the leading agent marketplace have been installed over 100 million times by users, and they age
Speaker #1: For the cybersafety segment, revenue grew 5%. Bookings were also up mid-single digits. The durability of our cybersafety growth continues to be supported by both new and existing customers migrating to an all-in-one membership suite, and/or adopting multiple point products.
Speaker #3: next decade of digital
Speaker #3: trust that will be decided. Before I close, I want to address capital
Speaker #4: The latest Norton 360 release also brings this into VR. There's some customer tough questions. How do I keep my AI agent intact?
Speaker #3: allocation and M&A. Our first priority is investing organically where customer needs are
Speaker #3: and returns are strongest. We have built a durable business that generates nearly $2 billion in annual free cash flow, and we return excess cash through share buyback or debt
Speaker #4: The third year is here. This holiday
Speaker #1: As financial scans, AI threats, deepfakes, and travel security threats proliferate, we are seeing strong adoption of our higher-tier Norton 360 memberships. Which reached another hot record high as a percentage of our total membership.
Speaker #4: Agents will show up, but the liability when they get wrong will remain.
Speaker #3: repayment while maintaining a strong balance sheet. That framework
Speaker #4: And then to me, these face the same challenges. Some are outside regions, others are opening up.
Speaker #3: has not changed. What also has not changed is that M&A remains part of our growth strategy and an accelerator to furthering our mission. We continuously assess consumer
Speaker #4: Of course, we need infrastructure for consent, eligibility, compliance, and fraud.
Speaker #1: These memberships not only deliver best-in-class solutions, such as identity, scam protection, and VPN features, but all these products are integrated across a single platform that leverages the vast amount of trusted, unique, and permissioned data to create a more holistic, and unified experience for our members.
Speaker #5: Anything is building that infrastructure inside our marketplace, not you.
Speaker #3: needs, engage with companies, and explore opportunities to expand
Speaker #4: And we launched the first internet shopping experience with AI agents in September. And MoneyLion already uses Engin to help people and their agents
Speaker #3: capabilities and reach. But our organic plan stands on its own, and our outlook for this year and the next does not depend on an acquisition.
Speaker #5: their savings product.
Speaker #5: Our GenLab has more to come. It is not resolved.
Speaker #3: Whether
Speaker #3: we build, partner, or acquire, each decision must stand on its merit and return
Speaker #1: This intelligence continues to power and enhance our AI cybersafety product recommender turning the behavioral economics of different cohorts within our existing base into personalized, offer decisioning and campaigns directly impacting the performance across sales and upsells, in Norton this quarter.
Speaker #4: Some of you have asked me whether personal agents reduce the need for what we do. They respond the other way. AI and agents create more ways to apply to reach
Speaker #3: on invested capital. In line with our track record, we stay disciplined and act in the long-term
Speaker #3: interest of our shareholders. We don't comment
Speaker #4: consumers. As people adopt these tools, the need for safety and trust follows with them.
Speaker #3: on specific targets or rumors. Out of respect for our strategic work and the business partners we
Speaker #4: We don't expect Gen capabilities to contribute materially to revenue in this fiscal year, but this is about positioning Gen for the next decade of digital trust.
Speaker #1: Which were up double digits. As we move members up in membership tiers, and on to multi-products, both retention and ARPU for these cohorts are increasing by 5 to 10 points.
Speaker #3: engage with. But to avoid any misunderstanding, let me be clear: we are not working
Speaker #3: on a transformative acquisition today. The Gen team remains focused on serving customers and improving our products.
Speaker #4: That will be
Speaker #1: That's why we always strengthening and we will continue feeding it with our future innovation. Additionally, our international expansion efforts are now translating to revenue, with broad base growth rates year-over-year across the geographic regions.
Speaker #5: Before I close, I want to address customer engagement and the mandate.
Speaker #3: and building for the AI The Gen team remains focused on serving customers, improving our products, and building for the AI era. era. We have strengthened our growth model by focusing on customer needs, connecting our capabilities on one platform,
Speaker #5: Our first priority is investing organically where customer needs are and returns are strong.
Speaker #5: We have built a durable business that generates nearly $2 billion in annual free cash flow, and we return excess cash through share buybacks or debt repayment, while maintaining a strong balance sheet.
Speaker #1: On the back of strong demand, cross-sells and retention. We will continue to push on each lever with our expanded portfolio, leveraging our scale distributions, our partners, our existing customer base, and our COV playbook to drive continued cybersafety growth.
Speaker #3: and investing with discipline. In the second half, we will
Speaker #3: demonstrate once again that we can.
Speaker #3: keep doing all three. I'm confident in our team, our
Speaker #5: That's the model that has not changed.
Speaker #3: plan, and our ability to deliver. So thank you to the gen team for bringing this mission to life, every day. And with that, let me turn it over to
Speaker #5: M&A remains part of our core strategy and an accelerator in furthering our mission. We continuously assess customer needs and increase company value.
Speaker #1: Cybersafety margins reached a record high of 62% in the quarter, demonstrating the strength of our platform capabilities to drive incremental margins. Looking ahead, we will continue to manage cybersafety to mid-single digit revenue growth, and to 60% plus operating margin, and continue our track record of rigorous operational discipline.
Speaker #3: Natalie to walk you through the financials.
Speaker #1: Thank you, Vincent, and hello, everyone. For today's call, I will go through our Q2 fiscal 2027 results and our raised outlook for
Speaker #5: and explore opportunities to extend capabilities and reach.
Speaker #4: But our organic plan stands on its own, and our public equity future and Connect does not depend on acquisitions. Whether we build, partner, or acquire,
Speaker #1: full-year fiscal 2027. I will focus on non-GAAP financials and adjusted year-over-year growth rates
Speaker #1: unless otherwise stated. I'll hand over results. We delivered another strong quarter with our key metrics all up double digits, from
Speaker #4: Each decision will stand on its merits and return on invested capital.
Speaker #1: In Q2, trust-based solutions bookings and revenues increased 24% and 26% respectively. Performance of our identity portfolio remained consistent. Last quarter, we talked about our reimagined lifelock product experience, which has enabled us to drive adoption uplift to key features like financial monitoring through contextual and personalized prompts, and convert more customers to higher-tier identity offerings.
Speaker #1: revenues to operating income to EPS to free cash
Speaker #5: We know we've got a track record of staying disciplined and acting in the long-term interest of shareholders.
Speaker #1: 12% to
Speaker #1: $1.37 billion, beating the high end of our
Speaker #4: We dont count on specific jobs or women.
Speaker #1: guidance. Our bookings were up
Speaker #4: for strategic work and the business partners we engage with.
Speaker #1: 10% to $1.35
Speaker #1: billion, and marked the sixth
Speaker #4: To avoid any misunderstandings, let me be clear: we are not working on a transformative acquisition.
Speaker #1: consecutive quarter of double-digit growth, with consistent growth across both our
Speaker #1: cybersafety and trust-based solutions segments. Not only did revenues come in better than expected, we delivered
Speaker #1: While we are still in the initial phase of the rollout, these early signs suggest that consumers are seeing and embracing the value of lifelocks identity protection solutions and underwrite the trust that we have built with consumers.
Speaker #1: that upside with strong incremental
Speaker #4: We have strengthened our growth model by focusing on customer needs, connecting our capabilities on one platform, and investing in digital.
Speaker #1: operating drop-through, with operating profit dollars up
Speaker #1: 10%. Operating margin for the quarter was
Speaker #1: consistent at 50%, even
Speaker #1: Personal, financial management continued the growth momentum we have recently seen in the business. As the economic backdrop evolves, consumers face an increasing need to balance their cash flow needs with the more rigid timing of their paychecks.
Speaker #1: As we continue to invest in multiple initiatives across product and marketing, the continued strength in our business gives us confidence.
Speaker #5: In the second half, we'll demonstrate once again
Speaker #4: We can keep doing all 3.
Speaker #4: Our company, our team, our plan, and our ability to deliver.
Speaker #1: that our solutions and products are serving our customers' needs and pain points and sets up the
Speaker #4: So, thank you to the Gen team for bringing this mission to life every day. And with that, let me turn it over to Natalie to walk you through the financials.
Speaker #1: momentum for us to lean into our investments in the second half. For the cybersafety segment,
Speaker #1: Our Instacash solution helps bridge those critical cash flow gaps and delivered another strong quarter of origination volume growth in Q2, with Instacash onboarding a record number of new users and increased usage measured as advances per user.
Speaker #4: Thank you, Vincent, and hello everyone. For today's call, we'll go through our Q2 fiscal 2027 results and our raised outlook for Q4 fiscal 2027.
Speaker #1: revenue grew 5%. Bookings were also up mid-single digits. The durability of our cybersafety growth continues to be supported by both new and existing
Speaker #6: Focus on non-GAAP financials and adjusted year-over-year growth rates unless required.
Speaker #1: customers migrating to an all-in-one membership suite and/or adopting
Speaker #1: This demonstrates the strong appeal and value of our solution and gives us the foundation to continue to innovate across our money-line portfolio. While we only recently launched money-line one membership, it is showing promising early signs of better engagement as members shift more of their savings and direct deposits to money-line.
Speaker #1: multiple point products. As financial
Speaker #6: Now on to our results. Strong quarter with our team all up double digits from revenue to operating income.
Speaker #1: scans, AI threats, deepfakes, and travel security threats proliferate, we are seeing
Speaker #1: strong adoption of our higher-tier Strong adoption of our Norton 360
Speaker #4: 12%.
Speaker #1: memberships. Which reached another hot record high as a percentage of our total membership. These memberships not only
Speaker #4: $37 billion.
Speaker #1: In Q2, our engine marketplace continued its strong momentum with growth across multiple categories, demonstrating the breadth and depth of our diverse product offerings to our partners and consumers.
Speaker #4: We're up 10%.
Speaker #4: To what?
Speaker #1: deliver best-in-class solutions, such
Speaker #4: 6%.
Speaker #1: as identity, scam protection, and VPN
Speaker #5: Great.
Speaker #6: Cyber safety and trust.
Speaker #1: a single platform that leverages
Speaker #1: During the quarter, our top-of-funnel matched product inquiries, which is a proxy for consumer interest in our marketplace, and our diverse diversified product offering, more than doubled versus last year.
Speaker #1: the vast amount of trusted,
Speaker #1: unique and permissioned data to create a more holistic and
Speaker #4: Delivered that up.
Speaker #1: unified experience for our members. This intelligence
Speaker #4: Drop through without.
Speaker #1: continues to power and enhance our AI cybersafety product
Speaker #4: Operating model reform.
Speaker #1: In the quarter, we added 18 new partners with an even larger sales pipe of new partners to be onboarded in the coming quarters. Trust-based solutions margin was stable at 30% in the quarter, with operational gains supporting strong double-digit growth in financial wellness.
Speaker #4: Next.
Speaker #1: recommender, turning the behavioral economics of different cohorts within our
Speaker #4: Invest in multiple.
Speaker #1: existing base into
Speaker #6: Business confident that our solutions and products.
Speaker #1: campaigns directly impacting the performance across sales and
Speaker #1: upsells, in Norton this quarter. Which were up double digits. As we move members up in
Speaker #6: Momentum for us to lean into our investment.
Speaker #1: Our data science team continues to drive efficiencies with various initiatives, such as enhancing our AI decisioning agent flows and contextualized offers, that improves our conversion yields.
Speaker #1: membership tiers and onto multi-products, both retention and
Speaker #4: For the scientific segment, revenue grew 5%.
Speaker #1: ARPU for these cohorts is increasing by 5 to 10 points. That's why we are always strengthening, and we will...
Speaker #4: Durability of our cybersecurity group continues to support new and existing customers.
Speaker #1: continue feeding it with our future innovation.
Speaker #1: As we've stated in the past, our margin in this segment will be driven by product mix, but as you can see in our past few quarters, we've been able to achieve consistent margins even while we continue to invest behind our growth categories.
Speaker #1: Additionally, our international expansion efforts are now translating to revenue, with broad base growth rates year over year
Speaker #6: More than 100 suites and/or adopt multiple point products.
Speaker #6: Financial scam.
Speaker #1: across the geographic regions. On the
Speaker #1: back of strong demand, On the back of strong demand. cross-sells and retention. We will continue to push on each lever with our
Speaker #1: Direct revenue of $1.074 billion was up 6% in line with our prior quarterly trends. Our partner channel achieved accelerated revenue growth of 40% to $295 million with double-digit growth across multiple channels, including employee benefits, financial marketplace, and our telco channel.
Speaker #1: expanded portfolio, leveraging our scale distributions, our
Speaker #6: which reached another record high as a percentage.
Speaker #1: partners, our existing customer base, and our COV playbook to
Speaker #1: Drive continued cybersafety growth. Cybersafety margins reached a record high of 62% in the quarter, demonstrating the strength of our platform.
Speaker #6: Memberships not only delivered
Speaker #6: Identity.
Speaker #1: Our omni-channel strategy and our partner business, which now represents over 20% of our total revenue, represents a multiplier on top of our direct-to-consumer product offerings and new markets geographies and channels.
Speaker #4: All these products are created.
Speaker #1: capabilities to drive incremental margins. Looking ahead, we will
Speaker #6: Platform, vast amount of.
Speaker #1: continue to manage cybersafety to mid-single digit revenue growth and to 60% plus operating margin, and continue our track
Speaker #6: And permission.
Speaker #6: A more holistic and unified.
Speaker #6: This intelligence continues to power and enhance our AI solutions.
Speaker #1: record of rigorous operational discipline. In Q2, trust-based solutions
Speaker #1: Q2 paid customers increased to $83 million, up from $81 million last quarter and $77 million last year. With consistent performance from our cybersafety and identity subscriber base, and expansion into new partners and verticals.
Speaker #6: Liberal economics.
Speaker #1: bookings and revenues increased Q2 transportation booking increased 24%. 24% in 26% respectively. Performance of
Speaker #6: With large space.
Speaker #6: Personalized. Directly impacting.
Speaker #1: our identity portfolio remained
Speaker #1: Consistent. Last quarter, we talked about our reimagined LifeLock product experience, which has enabled us to drive adoption uplift to key features like financial monitoring.
Speaker #6: Performance of— in Norton this quarter.
Speaker #1: Our Q2 opex was $415 million, or 30% of sales, down 150 basis points sequentially and down 230 basis points from last year. AI-driven efficiencies are providing us leverage across many parts of our operations.
Speaker #6: Move members up in membership tiers.
Speaker #1: through contextual and personalized
Speaker #6: And our food for these cohorts.
Speaker #1: Prompts, and convert more customers to higher-tier identity offerings. While we are still in the initial phase of the rollout, these early signs suggest that consumers are seeing and embracing this view of LifeLock.
Speaker #6: That flywheel is happening, and we will continue
Speaker #1: Our AI creative studio produced four times the ad assets of last year at a fraction of agency costs. And our latest lifelock campaign was our first with 85% AI-generated scenes.
Speaker #6: In addition, our international—
Speaker #1: identity protection solutions
Speaker #6: Broad-based growth rate.
Speaker #1: and underwriting the trust that we have built with consumers. Personal, financial
Speaker #1: management continued the growth momentum
Speaker #1: In customer support, AI now resolves roughly half of context end-to-end at lower support costs and with higher service levels. In engineering, 75% of the code we shipped in the first half was AI-written, and productivity is up 20% since the beginning of our fiscal year.
Speaker #1: we have recently seen in the
Speaker #6: We will continue to push each lever with our expanded portfolio.
Speaker #1: business. As the economic backdrop
Speaker #1: evolves, consumers face an increasing need to balance their cash flow
Speaker #4: Our partners are giving us more.
Speaker #1: needs with the more rigid timing of their paychecks. Our Instacash solution helps bridge those critical cash flow gaps and delivered another
Speaker #6: Our CLV playbook to drive continued cyber—
Speaker #4: Cybersecurity margins grew record high at 50% according to demonstrating the strength of our platform capabilities to drive
Speaker #1: strong quarter of origination volume growth in Q2, with Instacash onboarding a record number of new users and increased usage
Speaker #1: These gains are how we fund the growth agenda while protecting margins. Profitable growth remains the target, with EPS growth as our guiding principle. We continue to invest in sales and marketing to drive both top-of-the-funnel awareness and customer conversion and upsell, while maintaining our discipline around COV and CAC.
Speaker #6: Looking ahead, we'll continue to manage cybersecurity.
Speaker #1: measured as advances per user. This demonstrates the strong appeal and value of our solution and gives us the
Speaker #6: And continue our track record of rigorous operational
Speaker #1: our money-line portfolio. While we only recently launched money-line one membership, it is showing promising early signs of better
Speaker #1: We also continue to achieve efficiencies across our R&D efforts as we scale our top line, with R&D spend of $96 million or 7% of sales.
Speaker #6: Performance of our identification
Speaker #1: engagement as members shift more
Speaker #1: of their savings and direct deposits to money-line. In Q2, our engine marketplace continued its strong momentum with growth across multiple categories. Demonstrating the breadth and depth of
Speaker #6: Last quarter we talked about
Speaker #6: Which have enabled us to drive adoption uplift in key features like financial monitoring through
Speaker #1: G&A discipline continued, at less than 3% of sales. Our Q2 non-gap operating margin was stable at 50% sequentially, and our operating income rose 10% year-over-year to $686 million.
Speaker #1: our diverse product offerings to our partners and consumers. During the quarter, our top-of-funnel matched product
Speaker #4: While we are still in the initial phase of the rollout, early signs suggest that consumers are seeing and embracing the value.
Speaker #1: inquiries which is a proxy for consumer
Speaker #1: While our reported margin is a function of product mix, we have delivered an expanding and efficient return on invested capital. If you look at our results over the past few years, as we scale the business, drive operating leverage, our ROIC has improved consistently.
Speaker #1: Our diverse, diversified product offering more than doubled.
Speaker #6: And underwrite the trust that we have.
Speaker #1: versus last year. In the quarter, we added 18 new
Speaker #4: Personal financial management continued its growth.
Speaker #1: partners with an even larger sales pipe of new partners to be onboarded in
Speaker #4: Vincent.
Speaker #1: the coming quarters. Trust-based solutions margin was stable at 30% in the quarter, with operational gains supporting strong performance.
Speaker #1: This is how we measure our business investments and capital deployment, ensuring a high return on capital as we further scale our business organically and inorganically.
Speaker #6: That's the economic factor of the world.
Speaker #6: Consumer space and.
Speaker #6: Needs with the more rigid timing.
Speaker #1: double-digit growth in financial wellness. Our data science team continues
Speaker #4: Our Instacash solution, another strong
Speaker #1: to drive efficiencies with various initiatives, such as:
Speaker #1: Q2 net income was $444 million, while non-gap diluted EPS was $74 cents, up 19% year-over-year, and exceeded our guided range of $71 to $73 cents.
Speaker #1: enhancing our AI decisioning agent flows, and
Speaker #6: Vincent Cash onboarding a record new usage measured as
Speaker #1: contextualized offers. That improves our conversion yields. As we've stated in the past, our margin in this
Speaker #1: Interest expense was $118 million in Q2, and our non-gap tax rate stayed at 22%. We spent nearly $250 million in the quarter on shareholder returns across dividends and share repurchases.
Speaker #1: mix, but as you can see in our past few quarters, we've been able to achieve consistent margins even while we continue to
Speaker #6: This demonstrates the strong appeal and value of our solution and gives us the foundation to continue to innovate.
Speaker #1: invest behind our growth categories.
Speaker #6: While we only recently launched Mobileye, we remember it's showing promising signs of better engagement.
Speaker #1: Direct revenue of $1.074 billion was up.
Speaker #1: Our commitment to shareholders and our operating principle is to deliver EPS growth faster than revenue growth. We have various levers to achieve this goal, ranging from expanding margin across our various product lines debt repayment and share buybacks.
Speaker #1: 6% in line with our prior quarterly trends. Our partner channel achieved accelerated revenue growth
Speaker #6: shift more of their savings in direct deposit.
Speaker #1: of 40% to $295 million. With
Speaker #6: In Q2, our engine marketplace continued to grow across multiple categories, demonstrating that our diverse product offerings
Speaker #1: double-digit growth across multiple channels,
Speaker #1: including employee benefits, financial marketplace, and our telco channel. Our omni-channel strategy and
Speaker #1: Now, let me talk about our balance sheet and cash flow. We ended Q2 with $589 million in cash, up from $564 million in Q1.
Speaker #1: our partner business, which now represents over 20% of our total revenue, represents a multiplier on top of our direct-to-consumer product
Speaker #6: During the quarter, our top-of-funnel matched product inquiry, which is a proxy for consumer
Speaker #1: We generated $326 million in operating cash flow, and $323 million in free cash flow. Our net leverage is now below 2.9 times as we paid down $45 million of our debt in the quarter.
Speaker #1: offerings in new markets, geographies, and channels. Q2 paid customers increased to $83 million up from
Speaker #6: And
Speaker #4: and diversified product offerings more than doubled last year.
Speaker #4: In the quarter, we added 18 new partners.
Speaker #1: $81 million last quarter and
Speaker #1: $77 million last year.
Speaker #6: Sales pipe of new partners on board.
Speaker #1: With consistent performance from our cybersafety and identity subscriber base,
Speaker #1: We also paid $76 million in dividends. For Q2 fiscal 2027, the board of directors approved a regular quarterly cash dividend of $12.5 cents per common share, to be paid on December 9th, 2027, for all shareholders of record as of the close of business on November 16th, 2026.
Speaker #4: Trust-based marketing partners were stable at 30% in the quarter, with operational gains supporting strong growth in Q1.
Speaker #1: and expansion into new partners and verticals. Our Q2 opex was $415 million or 30% of sales, around
Speaker #6: Our data science team continues to drive efficiency.
Speaker #1: 150 basis points sequentially, down 230 basis points from last year. AI-driven efficiencies are providing us leverage across...
Speaker #6: Such as enhancing agent flows.
Speaker #6: Contextualized offers.
Speaker #1: Excuse me, to be paid on December 9th of 2026, for all shareholders of record as of the close of business on November 16th, 2026.
Speaker #1: many parts of our operations. Our AI creative studio produced four times the ad assets of last year, a
Speaker #6: As we've stated in the past, our model is driven by product mix.
Speaker #1: We repurchased $171 million of our shares outstanding. We have $1.8 billion remaining in our current program, and we will continue to repurchase shares as we believe that our current share price is not reflective of our actual performance and value.
Speaker #1: fraction of agency costs.
Speaker #1: In our latest lifelock campaign was our
Speaker #6: Even while we continue to invest behind our growth.
Speaker #1: first with 85% Our first with 85%. AI-generated scenes. In customer support, AI now resolves roughly half of context
Speaker #6: Direct revenue.
Speaker #6: $1.074 billion was up 6% in the last 12 months.
Speaker #1: end-to-end at lower support costs and with higher service levels. In engineering, 75% of the code we shipped in the first half was AI-written, and productivity is up 20% since the beginning of
Speaker #1: There are no changes in our guiding capital allocation principles. We will continue to deploy our capital on a disciplined and balanced fashion. In summary, we delivered first half results with strong momentum across our portfolio, while maintaining our operating margin and achieved high teens EPS growth.
Speaker #4: Our partner channel, which already represents 40% of Q2 revenue,
Speaker #6: $295 million, double-digit growth across the channel.
Speaker #6: Benefits, financial.
Speaker #1: our fiscal year.
Speaker #6: Our omnichannel strategy has proven business, which now represents
Speaker #1: growth agenda while protecting margins. Profitable growth remains the target, with EPS growth as
Speaker #1: With this position of strength and several new product introductions in the coming quarters, we are confident in our ability to capture the various growth opportunities in front of us in the second half.
Speaker #6: multiplier on top of our consumer product offerings in new markets.
Speaker #1: our guiding principle. We continue to invest in sales and marketing to drive both top-of-the-funnel awareness and customer conversion and upsell, while maintaining our
Speaker #6: If you break up $81 million last quarter,
Speaker #1: Now, let me discuss our Q3 and raised fiscal 2027 guidance and some of the assumptions that underpin it. We expect Q3 to be another strong quarter, with revenue of $1.365 to $1.39 billion up 10 to 12%.
Speaker #1: Discipline around COV and CAC. We also continue to achieve efficiencies.
Speaker #6: last year.
Speaker #6: System performance.
Speaker #1: across our R&D efforts, as we scale our top line with R&D.
Speaker #6: Subscriber base and expansion.
Speaker #1: spend of $96 million or 7% of sales. G&A discipline
Speaker #6: Q2 OpEx was $450 million, or 30% of sales, down 150 basis points sequentially and down 230 basis points year-over-year.
Speaker #1: We are raising and narrowing our fiscal 2027 revenue to $5.465 to $5.515 billion reflecting growth of 10 to 11%. Versus prior guidance of 9 to 11%.
Speaker #1: continued, at less than 3% of sales. Our
Speaker #1: Q2 non-GAAP operating margin was stable at 50% sequentially, and our operating income rose 10%.
Speaker #6: AI-driven efficiencies are providing us leverage across many parts of our operations.
Speaker #1: year-over-year to $686 million. While our reported margin is a function of product mix, we have delivered an expanding and
Speaker #1: We expect Q3 non-gap EPS to be in the range of $73 to $75 cents, representing growth of 15 to 18%. And we are raising fiscal 2027 non-gap EPS to $2.93 cents, to $2.98 cents, up 16 to 18% year-over-year, versus our prior guidance range of 14 to 18%.
Speaker #6: AI-created video produced 4 times the ad assets of last year.
Speaker #1: efficient return on invested capital. If we look at our results over
Speaker #4: And our latest Black Box
Speaker #1: the past few
Speaker #1: years, as we scale the business, drive operating leverage,
Speaker #6: Definitely support AI results in massive context at lower support costs.
Speaker #1: our ROIC has improved consistently.
Speaker #1: our business investments and capital deployment, ensuring a high return on capital as we further scale our business organically and
Speaker #1: Our expanded strategic leverage of growth, combined with strong profitability across each business line, enable us to deliver high teens earnings growth this year, outperforming our prior mid-term target of 12 to 15% EPS growth.
Speaker #4: In engineering, 75% of the code is AI-written. Productivity is up 20%.
Speaker #1: inorganically. Q2 net income was $444 million, while non-gap diluted EPS was $74 cents, up 19% year-over-year and exceeded
Speaker #6: These games are how we fund—
Speaker #6: Profitable growth remains the target with EPS growth guiding.
Speaker #1: Our guided range of $0.71, and exceeded our guided range of 71% to $0.73 cents. Interest expense was $118 million in Q2, and our
Speaker #1: I want to thank all Gen employees around the world for their contribution to this success, and we look forward to delivering great value for our employees, customers, and shareholders.
Speaker #6: We continue to invest in sales and marketing to drive the funnel through to trust, conversion, and upsell while maintaining our discipline around COGS.
Speaker #1: non-gap tax rate stayed at 22%. We spent nearly $250 million in the
Speaker #1: As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator?
Speaker #1: quarter on shareholder returns across dividends and share repurchases. Our commitment to shareholders and our operating principle is to deliver EPS growth faster than revenue
Speaker #2: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand.
Speaker #6: We also continued to increase efficiency across our R&D efforts.
Speaker #6: R&D spend of $96 million.
Speaker #1: growth. We have various levers to achieve this goal, ranging from expanding margin across our
Speaker #2: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.
Speaker #6: G&A discipline continued at less than 3%.
Speaker #1: repayment and share buybacks. Now, let me talk about our balance sheet and cash flow. We
Speaker #6: Our Q2 non-GAAP operating margin stayed at 60%.
Speaker #2: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Roger Boyd with UBS.
Speaker #6: And our operating income rose 10% year over year.
Speaker #1: ended Q2 with $589
Speaker #1: million in cash, up from $564 million in Q1. We generated $326 million in operating cash
Speaker #6: While our reported margin is a function of product mix, we delivered an expanding
Speaker #1: flow, and $323 million in free cash flow. Our net leverage is now below 2.9 times as we've paid down $45
Speaker #6: If you look at the results over the past few years,
Speaker #2: Your line is open. Please go ahead.
Speaker #6: As we scale the business,
Speaker #3: Great. Thanks for taking the questions and yeah, hey, Vincent, congrats on the nice results. I wanted to see if you could maybe expand on customer interest you're seeing and some of the personal AI security products, like SafeAI, any metrics you can share around kind of demand adoption of these products, and to what extent are they driving some of the healthy uplifts you're seeing on Northern 360.
Speaker #6: Drive operating leverage, our ROI.
Speaker #1: million of our debt in the quarter, we also paid
Speaker #1: $76 million in dividends. For Q2 fiscal 2027, the board of directors approved a regular quarterly cash dividend of $0.125 per common share, to be paid
Speaker #6: This is how we measure it. Capital deployment.
Speaker #6: A high return on capital as we further scale our business organically and inorganically.
Speaker #1: on December 9th, 2027, for all shareholders.
Speaker #3: And then I have a thought for Natalie.
Speaker #1: of business on November 16th, 2026. Excuse me, to be paid on December 9th of 2026, for all shareholders of record at the
Speaker #4: Yeah, that's obviously the question of the day. Everybody has it in mind, right? And if you recall, Roger, we started to see some movement with OpenClaw at the beginning of the year.
Speaker #1: close of business on November 16th, 2026. We repurchased $171 million of
Speaker #6: Interest expense was $118 million in Q2, and our non-GAAP tax rate
Speaker #4: And then Muse and other agentic solutions now are kind of widespreading by the millions across consumers. It's a fun experience. We haven't really seen yet a full set of use cases that will be repeated, but I think the shopping season that's coming is going to be a great proof point.
Speaker #1: our shares outstanding. We have $1.8 billion remaining.
Speaker #6: We spent nearly $250 million in shareholder returns across the
Speaker #1: in our current program, and we will continue to repurchase shares as we believe that our current share price is not
Speaker #6: Our commitment to shareholders and our operating principles is to deliver incremental returns to the rest of the group.
Speaker #1: reflective of our actual performance and value. There are no
Speaker #1: changes in our guiding capital allocation principles. We will continue to
Speaker #4: Those agentic solutions or those agents bring new risk surfaces for consumers. They connect the email, they connect the credit card, they connect multiple things, and even if you think that you password is protected because you have a password solution or your credit card is protected because you have a special wallet, the truth is your agent might go and find a scammed website, thinking it's a real one, and buy something for you that will never show up.
Speaker #6: We have various levers to achieve this goal, ranging from getting larger across product lines, debt repayment,
Speaker #1: Promote our capital in a disciplined and balanced fashion.
Speaker #1: In summary, we delivered first half results with strong momentum across our
Speaker #1: portfolios, while maintaining our operating margin and achieved high teens EPS growth. With this position of
Speaker #4: Now let's talk about the end of Q2.
Speaker #4: Cash up from $5.
Speaker #1: strength and several new product introductions in the coming quarters, we are confident in our ability to capture the
Speaker #4: Generated $325 million operating income and $325 million
Speaker #1: various growth opportunities in front of us in the We're confident in our ability to capture the various growth opportunities. second half. Now, let me discuss our Q3 and raised fiscal 2027
Speaker #4: So the risk is definitely pushing ahead. And as you know, we started with building the agent trust hub to validate your agented skills in an OpenClaw environment.
Speaker #6: Net leverage is now below 5.9 times as we paid down $40 million of our long-term debt.
Speaker #1: guidance, and some of the assumptions that underpin it. We expect Q3 to be another strong quarter, with revenue of
Speaker #4: We also paid $76 million in dividends.
Speaker #4: We now moving that into the consumer hands, making sure that they can stay in control of their agents or agentic solutions. We have other ambitions to move from a full security agent into a secure agent, meaning an agentic solution that is secure in nature to help you do some of those activities.
Speaker #1: $1.365 to $1.39 billion up 10 to 12%. We are raising and narrowing
Speaker #4: Q2 fiscal quarter, quarterly cash flow per common share, we paid 9/2022.
Speaker #1: our fiscal 2027 revenue to $5.465 to
Speaker #6: All 3 years of record as of the close of business.
Speaker #1: of 10 to
Speaker #1: 11%. Versus prior guidance of 9 to Versus prior guidance of $9.1 billion. 11%. We expect Q3 non-gap EPS to be in the range of $73 to $75
Speaker #4: Paid on December 9th, 2026, for all shareholders of record as of the close of business on
Speaker #4: NFA, a known family assistant, or even Norton Neo are built with that in mind. I would think it's early. I don't expect significant material revenue impact from that here now, but adoption will be an interesting one to go.
Speaker #1: cents, representing growth of 15 to 18%, and we are
Speaker #6: We repurchased $171 million.
Speaker #1: raising fiscal 2027 non-gap
Speaker #6: We have 123 adults in our current program.
Speaker #1: EPS to
Speaker #1: $2.93 to
Speaker #6: We will continue to repurchase shares, as we believe that our current share price is not reflective of our actual value.
Speaker #1: $2.98, up 16% to 18% year-over-year, versus our prior guidance range.
Speaker #4: Many investors ask me, do you see Muse trying to unsubscribe your services? The truth is we've seen the highest retention rate this quarter across our brand.
Speaker #6: There are no changes in our guiding capital allocation principles.
Speaker #1: of 14% to 18%. Our expanded strategic levers of growth,
Speaker #6: Continue to deploy our capital in a disciplined manner.
Speaker #1: combined with strong profitability across each business line, enable us to
Speaker #4: And I think the overall angst, if you want, that these agent solutions bring is just increasing the need for protection. And if you ask me if I've already seen a Muse agent buying one of my Northern 360, the answer is no, but hopefully it should not it should start very soon because I think in this environment, if I was a consumer, I would want to be protected.
Speaker #6: This story we delivered first after COVID.
Speaker #1: deliver high teens earnings growth this year, outperforming our
Speaker #6: Maintaining our operating margin.
Speaker #1: prior mid-term target of 12 to 15% EPS growth. I want to thank all Gen
Speaker #6: This position is strength in several of these funds.
Speaker #1: employees around the world for their contribution to this success, and we look forward to delivering great value for our employees, customers,
Speaker #1: and shareholders. As always, thank you for your time today, and I will now turn the call back to the operator to take your questions.
Speaker #6: We're going to discuss our Q3 fiscal 2027 guidance.
Speaker #1: questions. Operator?
Speaker #3: That was great color. And then, Natalie, really strong partner growth in the quarter. Wondering if you could expand on the magnitude of growth you're seeing, particularly within the employee benefits channel.
Speaker #2: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star
Speaker #6: We expect Q3 to be another strong quarter with revenue of $1.365, $1.39 billion.
Speaker #2: To raise your hand, press 1. To withdraw your question, press *1.
Speaker #3: It sounds like there's a fair amount of excitement heading into open enrollment. You noted the pipeline for Norton money into that channel. Just would love to hear your kind of thoughts on how you're thinking about both the cybersafety product as well as new products like Norton money in that channel.
Speaker #6: You're raising and narrowing fiscal 2027 revenue.
Speaker #2: Again, we ask that you pick up your
Speaker #2: handset when asking a question to allow for optimum sound quality. If you are muted locally, please
Speaker #6: $5.465, $5.515 billion.
Speaker #2: remember to unmute your device. Please stand by while we compile
Speaker #4: Excuse me, non-GAAP EPS, $0.375, representing...
Speaker #2: the Q&A roster. Your first question comes from the line of Roger Boyd with UBS.
Speaker #1: Yeah, we're really excited about employee benefits. We've been building that quality of brokers, just the sales effectiveness of that channel, and just building that pipeline out for many quarters in a row.
Speaker #2: Your line is open. Please go ahead.
Speaker #4: And we are raising—
Speaker #4: On GAAP EPS.
Speaker #1: But to be quite honest, this quarter growth in employee benefits has been the highest it's been in five-plus quarters. So really excited to see not only the cybersafety products continue to be a strong growth contributor for us, but now, again, as we expand into delivering and bringing more of the financial wellness products into that pipeline, very excited about it.
Speaker #3: Great, thank you for taking the questions. And yeah, hey Vincent, congrats on the nice results. I wanted to see if...
Speaker #4: $3.93.
Speaker #4: $2.8 billion.
Speaker #6: Versus our prior guidance range of 14 to 15%.
Speaker #3: you could maybe expand on customer
Speaker #3: interests you're seeing and some of the personal AI I mean, in some of the— security products, like SafeAI, any metrics you can share around kind of demand adoption of these products, and to what extent are they driving some of the healthy uplifts you're seeing
Speaker #4: Our expanded strategic leverage of growth combined with strong profitability across each segment.
Speaker #4: Enable.
Speaker #3: On Northern 360. And then I have a thought for Natalie.
Speaker #6: Outperforming our prior midterm target of 12% to 15%.
Speaker #1: The pipeline's never been stronger. And now we've got a wider portfolio of products to sell.
Speaker #4: Yeah, that's obviously the question of the day. Everybody has it in mind. Pushing off the date really has been my— right? And if you recall, Roger, we started to see some movement with OpenClaw at the beginning of the year.
Speaker #6: I want to thank all Gen employees around the world for their contributions and success.
Speaker #3: Awesome. Thank you both.
Speaker #4: Thank you.
Speaker #6: Great value for our employees, customers, and shareholders.
Speaker #4: And then Muse and other agentic solutions
Speaker #2: Your next question comes from the line of Rob Coolbrith with Evercore ICI. Your line is open. Please go ahead.
Speaker #4: now are kind of widespreading by the millions across consumers. It's a fun experience. We haven't really seen yet a full set of use cases that will be repeated, but I think the shopping season A fun experience.
Speaker #6: As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator?
Speaker #5: Great. Thank you so much. Congratulations on the strong results. Vincent, on Muse in particular, I think there was an initial wave of concern that since died down.
Speaker #4: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand.
Speaker #4: great proof point. Those agentic solutions or those agents Um, don't forget the solution of those agents bring new risk to the system. bring new risk surfaces for consumers.
Speaker #4: To withdraw your question, press star 1 again.
Speaker #5: I think it's been around the sort of subscription audits that Muse was offering to perform for consumers. Did you see any initial uptick in cancels or people turning off auto-renewal at all?
Speaker #4: They connect the email, they connect the
Speaker #4: credit card, they connect multiple things, and even if you think that you password is protected because you have a password solution or your credit card is protected because you
Speaker #4: Asking a question.
Speaker #6: If you are muted locally, please remember to unmute yourself.
Speaker #5: And maybe you could just talk about generally these consumer agencies, both maybe a potential threat, but also an opportunity for you. And just generally, I mean, I think you also talked about improvements in engagement across the services.
Speaker #5: Please stand by while we compile the Q&A roster.
Speaker #4: have a special wallet, the truth is your agent might go and find a scammed website, thinking it's a real one, and buy something for you that will never show up.
Speaker #4: Your first question is from the line of Roger Boyd with UBS. Your line is open.
Speaker #4: So the risk is
Speaker #4: definitely pushing ahead. And as you know, we started with building the agent trust hub to validate your agented skills in an OpenClaw environment. We're now moving that into the consumer
Speaker #5: Great.
Speaker #5: We always think of engagement as sort of being the antidote to churn, but just anything you could tell us more about the levels of engagement that you drive with consumers consistently?
Speaker #4: hands, making sure that they can stay in control of their agents or agentic solutions. We have
Speaker #5: How those have been trending? And how do you see that relating to renewal rates? Thank you.
Speaker #4: other ambitions to move from a full security agent into a secure agent, meaning an agentic solution that is secure in nature to help you do some of
Speaker #4: Some of the uplifts you're seeing on, on
Speaker #4: Absolutely. So let me decompose first the Muse or broader the use of agents for or by consumers applying different use cases and subscription was one of those use cases.
Speaker #4: those activities. NFA, a known family assistant, or even Northern Neo are built with
Speaker #5: We started to see some movement in open flow at the beginning of the year, and then news and other adventitious growth is now kind of widespread by the millions.
Speaker #4: The next one is shopping. And actually, I think shopping is ahead of that. So no, we have not seen any increase in subscription. I would point you to this quarter was actually in the last four quarter the highest renewal rate.
Speaker #4: that in mind. I would think it's early. I don't significant material revenue impact from that here now, but
Speaker #4: We haven't really seen yet that set of use cases to be repeated. I think a couple of seasons that's coming. that's coming is going to be a
Speaker #4: Adoption will be an interesting one to watch. Many investors ask me if Muse is trying to unsubscribe your services. The truth is we've seen
Speaker #4: And we've seen solid demand for our product. So I would say that anxiety, if you want to be protected, is maybe even more reinforced.
Speaker #5: recalled yet.
Speaker #4: the highest retention rate this quarter across our brand, and I think the overall
Speaker #4: We've seen agentic solution or agent, I call them agentic hackers, reviving old vulnerabilities, as you know. It has impacted more of the enterprise, or enterprises, but I think indirectly, it floods that back to consumers with personal data and other information to leak and then create an increase in scam, which we also have seen this quarter.
Speaker #5: Choose, connect the email, they connect Twitter, connect multiple ways.
Speaker #4: angst, if you want, that these agent solutions bring is just increasing the need
Speaker #5: Even if you think that your password is protected because you have a password solution, you can start to protect it because you have a special wallet.
Speaker #4: for protection. And if you ask me if I've already seen a Muse agent buying one of my Northern 360, the answer is no, but hopefully it should not
Speaker #5: An agent might go and find a scam website, thinking it's a real one, and buy something for you that will never show up. So there is definitely pushing ahead.
Speaker #4: it should start very soon because I think in this environment, if I was a
Speaker #4: I think so the need to be protected from that perspective is unincreasing. That's one side of the equation. For us, the other side, which is really where we spend our time on, is making sure we can participate into that agentic new economy and provide our security agent and move that security agent into a secure agent applications where you can use PII data, but making sure that your agent doesn't fall on a scammed website or other impacts.
Speaker #4: consumer, I would want to be protected.
Speaker #5: As you know, we started with building the agent setup to validate your agent in the local flow environment. We're now moving that into the consumers' hands.
Speaker #3: That was great color. And then, Natalie, really strong partner growth in the quarter. Wondering,
Speaker #3: if you could expand on the magnitude of growth you're seeing, particularly within the employee benefits channel. It sounds like there's a fair amount of excitement heading into open enrollment.
Speaker #5: Making sure that they're in control of their, their agent or agentic solutions. We have other ambitions to move from
Speaker #3: You noted the pipeline for Norton Money into that channel.
Speaker #5: Full security agent into a secure agent, meaning an agentic solution that is secure in nature to help you do some of those activities.
Speaker #3: you're thinking about both the cybersafety product as
Speaker #3: well as new products like Norton Money in that channel.
Speaker #4: I think those are all opportunities coming to fruition. I don't think it's the next quarter or the next 12 months that's going to materially impact it, but we will be right there with new solutions.
Speaker #1: Yeah, we're really excited about employee benefits. We've been building that quality of brokers, the sales effectiveness of that channel, and just building that.
Speaker #5: And all the family assistants, or even Norton Neo, are built with that in mind.
Speaker #5: I think it's early. I don't expect significant material revenue impact from that here now, but adoption would be an interesting one to
Speaker #1: pipeline out for many quarters in a row, but to be quite honest, this quarter growth in
Speaker #4: Stay tuned for innovation. And it's about really preparing for the next decade and making gen relevant. So from that perspective, we're super excited. The topic of engagement, as you know, and you've been following us for a few years now, is a broad topic where we've been talking about that for five, six years, right?
Speaker #1: Employee benefits have been the highest they've been in five-plus quarters. So we're really excited to see not only
Speaker #5: goal. Many investors are asking if you've seen users trying to unsubscribe your services. The truth is we've seen the highest retention rate
Speaker #1: the cybersafety products continue to be a strong growth
Speaker #1: contributor for us. But now, again, as we expand into
Speaker #1: delivering and bringing more of the financial wellness products into that pipeline, very excited about it. The pipeline's never been stronger and now we've got a wider portfolio of
Speaker #4: We moved to be originally data and device security agents, and then moved that into really protecting your digital life as a user, and then we wanted to move from protecting to empowering and now empowering to you to make better decisions to improve your wellness or your prosperity.
Speaker #5: What our brand is, and I think the overall angst, if you want, that we see,
Speaker #5: is just increasing the need for protection.
Speaker #1: products to sell.
Speaker #5: And if you ask me if I've already seen a music agent buying one of my Norton 360s, the answer is no. But hopefully it should start very soon because
Speaker #3: Awesome. Thank
Speaker #3: you both.
Speaker #4: Thank you.
Speaker #4: That's a broad mission, multi-decades mission, and it starts at the core, making sure that you've moved from what was a decade ago a passive, reliable software to still be a reliable but engaging application and use case.
Speaker #2: Your next question comes from the line of Rob Coolbrook with Evercore ICI. Your line is
Speaker #5: I think in this environment, if I was a consumer, I would want to be protected.
Speaker #2: open. Please go
Speaker #2: ahead.
Speaker #6: Great color. And then Natalie, really strong partner growth in the quarter. Wondering if you could expand on
Speaker #4: Great. Thank you so much, and congratulations on the strong results. On Muse in particular, I think there was an initial wave of concern that since died down.
Speaker #4: Jeannie, inside the applications, the redesign of Northern 360 when customers spend more time in the application to find or to set up the relevant setup, sorry, and to make sure that they are protected the way they are or they want from a personalization perspective, bringing then more around the identity, the privacy, the privacy, the ability to manage your reputations all of that goes into this line of people spending more time with the applications in a positive manner.
Speaker #4: I think it's been around the sort of subscription audits that Muse was offering to perform for consumers. Did you see any initial uptick in cancels or people turning off auto-renewal at all?
Speaker #4: You know, the pipeline for Norton money into that channel. Um, we'd like to hear your kind of thoughts on how
Speaker #4: type of safety product as well as new products like
Speaker #4: And maybe you could just talk about
Speaker #4: generally these consumer agents,
Speaker #4: Both may be a potential threat, but also an opportunity for you. And just generally—I mean, I think you also talked about...
Speaker #6: We've been building that slowly over the— our effectiveness of that channel, building that pipeline out.
Speaker #4: Improvements in engagement across the services—we always think of engagement as being the antidote to churn. Is there anything you could tell us more about the levels of engagement that you consistently drive with consumers?
Speaker #6: But to be quite honest, this core growth is going to continue to land.
Speaker #5: Great. If I could try one more quickly. Thank you for the clarification on transformative M&A. Just wondering, though, if you could maybe comment, do you have any ambition over the medium to long term to serve the SMB market or the solo entrepreneur market in a more significant way with either both cybersecurity and financial services products?
Speaker #6: contributor for us.
Speaker #4: How those have been trending? And how do you see I was just wondering, how do you do that? You're really that relating to renewal rates?
Speaker #6: bringing more of the things
Speaker #4: Thank you. Absolutely. So let me decompose first the Muse or broader the use of agents for or by consumers applying
Speaker #5: Thank you.
Speaker #6: I'm very excited about that. And now we've got a wider portfolio of products.
Speaker #4: I think you've seen the proof points of our current portfolio, right? When we acquire Avast, people were wondering, what did we do? We're really scaling up and redesigning the platform to be modular, to be underlying every app that's coming in.
Speaker #4: Different use cases, and subscription was one of those use cases.
Speaker #6: Awesome. Thank you both.
Speaker #4: Cases. The next one is shopping. And actually, I think shopping is ahead of that. So no, we have not seen any increase in subscription.
Speaker #4: Your next question comes from the line of Robert Kuhlquist, Evercore ICI. Your line is open. Please go ahead.
Speaker #4: Then when we acquire Moneyline, people were wondering how that fits. And I think you've seen more and more of that proof points where financial wellness and security are part of an overall digital lives.
Speaker #4: I would point you
Speaker #4: to this quarter was actually in the last four quarter the highest renewal rate. And we've seen solid demand for our product. So I would say that anxiety, if you
Speaker #4: Great, thank you so much.
Speaker #4: And through the platform, we can deliver in an agentic way, modular white label through the different customer journeys, the value they require. We definitely have ambition to serve more of that digital lives, but as I mentioned, it's earned one moment at a time.
Speaker #4: want to have to be protected, is maybe even more reinforced. We've seen agentic solution or agent, I call them agentic hackers, reviving old vulnerabilities, as you know.
Speaker #4: It has impacted more of the enterprise or enterprises, but I think indirectly, it floats that back to consumers with personal
Speaker #4: And every time we earn more and more of that trust, the next adjacent needs is an opportunity for us to go and help the consumer deliver it.
Speaker #5: Not at all.
Speaker #5: And we just talked about, you know, like
Speaker #5: potential.
Speaker #4: data and other information to leak and then create an increase in scam, which we also have seen this quarter. I think so the need to be protected from that perspective is unincreasing.
Speaker #4: When we talk about consumer, it's broadly defined. So it also includes your circle, your family, and it also includes I would say micro businesses or solo preneurs people who are who have a personal digital life and a professional life and sometimes those two overlap.
Speaker #5: And, uh, Sarah, I mean, I think you also talked about improvements.
Speaker #4: That's one side of the
Speaker #4: equation. For us, the other side, which is
Speaker #4: really where we spend our time on, is making sure we can participate into that agentic new economy and provide our security agents and
Speaker #4: They have a behavior in terms of purchases, and online behavior that's very equal to a consumer, but it's for their professional earnings. And as you know, with Northern small businesses, and you'll see more of our portfolio will address some of those needs in a broadly defined way.
Speaker #4: move that security agent into a secure agent applications where you can use PII data, but making sure that your agent doesn't fall
Speaker #5: Absolutely. So it was first the news on the use of agents for online consumers applying different use cases.
Speaker #4: ...on a scammed website or other impacts. I think those are all opportunities coming to fruition. I don't think it's the next quarter or the next 12 months that's going to...
Speaker #5: Great. Thank you so much.
Speaker #5: One of those pieces, the next one is shopping.
Speaker #2: Your next question comes from the line of Joseph Gallo with Jefferies. Your line is open. Please go ahead.
Speaker #5: It's ahead of that. So no, we have not seen any increase in channel. Don't you know, this quarter was actually the last full quarter
Speaker #4: materially impact it, but we will be right there with new solutions. Stay tuned for innovation and it's about really preparing for the next decade and making
Speaker #6: Hey, guys. Thanks for the question. Can you talk a little bit more about the 100 million in revenue synergies? We have that target and the timing.
Speaker #4: gen relevant. So from that perspective, we're super excited. The topic of engagement, as you know, and you've been following us for a few years now, is a broad topic where we've been talking about that for
Speaker #6: Where do you expect that to materialize? Is that all financial wellness, or are you seeing any other areas of unexpected benefit?
Speaker #5: ...higher to lower rate, and we've seen very good news for our product. So I would say that, on that side, if you want to see different tactics, maybe even more...
Speaker #4: No, of course. Yeah, let me quickly do it. So just for other people on the phone, if they don't know what we're talking about, we identified that financial wellness coming from the underlying technology of Moneyline, an engine to be cross-sold or spread across the overall gen portfolio and to an an acceleration on top of that normal business gross rate, if you want.
Speaker #5: First, we've seen a gentler solution or agent than the other, reviving old vulnerabilities.
Speaker #4: five, six years, right? We moved to be originally a data and device security agent and then moved that into really protecting your digital life as a
Speaker #4: And then we wanted to move from protecting to empowering. And now, empowering...
Speaker #5: enterprise or enterprises. I think indirect is good enough to consume it with personal data and other information.
Speaker #4: to you to make better decisions to improve your wellness or your prosperity. That's a broad mission, multi-decade mission, and it starts at the core, making sure that you've moved from what was a decade
Speaker #4: There's a few areas. Obviously, in my script, I've mentioned one obvious one. Northern Money Workplace is actually built on a white labeled Moneyline technology that we then bring and sell with the Northern Life lock into the employee benefit channel.
Speaker #5: to use and then create an increase in spam, which we also have seen this quarter. I think so the need to protect it from that perspective is increasing.
Speaker #4: ...a passive, reliable software to still be a reliable but engaging application and use case. Genie, inside the applications, the redesign...
Speaker #5: That's one side of the equation for us. The other side...
Speaker #5: is really where we spend our time.
Speaker #5: is making sure we can participate in the new economy and provide our security agents and move that security even into
Speaker #4: We see a very good first reception on the overall funnel. We just introduced the product. They'll go to the onboarding season, as you know, in the employee benefit channels, and revenue will unroll over the following 12 months.
Speaker #4: of Northern 360 when customers spend more time in the application to find or to set up the relevant setup, sorry, and to make sure that they are protected the way
Speaker #5: Pure agent applications where you can use PII data, but making sure that your agent doesn't fall on an account website or other
Speaker #4: they are or they want from a person is a different perspective, bringing then more around the identity, the privacy, the privacy, the ability to manage your
Speaker #4: The marketplace, the marketplace to be included in our various properties into LifeLock, into Northern Money is another set of views. And then selling the marketplace to gen partnerships like Equifax, all part of that synergies.
Speaker #5: Those are all opportunities coming to fruition. I don't think the next quarter or the next 12 months is going to materially impact it, but we will be right there with
Speaker #4: reputations all of that goes into this line of people spending more time with the applications in a
Speaker #5: New solutions, seeking innovation, and it's about really preparing for the next decade and making Gen relevant. From that perspective,
Speaker #4: positive manner.
Speaker #5: Great. If I could try one more quickly.
Speaker #5: Thank you for the clarification on "Have a nice day." Transformative M&A. Just wondering, though, if you could maybe comment—do you have any ambition over the... I wanted to know if you could maybe comment, Jason, if you have any ambition to help the community for the long term.
Speaker #4: We feel well on track. We had indicated last quarter that it would ramp in the second half, which it is. And would run its runway or accelerate its runway through fiscal year 28.
Speaker #5: The topic of engagement, as you know, and you've been following us for a few years now, is a broad topic where we've been talking about that for 5, 6 years, right?
Speaker #5: Medium to long term, to serve the SMB market or the solo entrepreneur market in a more significant way, with either or both cybersecurity and financial services.
Speaker #6: That's really helpful and great to hear. Maybe just a follow-up. Operating margins, we're really impressive considering the mix shift in the business. What can the margin profile of trust-based solutions be over time?
Speaker #5: to be originally data and device security agents, and then move that into really protecting your digital life as a user.
Speaker #5: Either both cybersecurity and financial services products? Thank you.
Speaker #4: I think you've seen the proof points of our current portfolio, right? When we acquire vast people were wondering, what did we do? We're
Speaker #6: Especially as you move more into that high margin first-party domain?
Speaker #5: From protecting to empowering, and now empowering you to make better decisions.
Speaker #4: really scaling up and redesigning the
Speaker #3: Yeah, there's definitely a lot of puts and takes related to the mix of that segment, especially as when you get into the financial wellness.
Speaker #4: platform to be modular, to be underlying every app that's coming in. Then when we acquired Moneyline, people were wondering how that fits. And I think you've seen more and more of those proof points where
Speaker #5: That's a bold mission, multi-decade mission, and start at the core, making sure that we move from a decade ago, effective, reliable software
Speaker #3: In terms of the margin architecture, though, we've consistently said we're going to run that segment at approximately 30% as we navigate through that mix, and we look at the different levels different areas of growth.
Speaker #4: financial wellness and
Speaker #4: security are part of an overall digital lives. And through the platform, we can deliver in an agentic way, modular, white label through the different customer journeys, the value they require.
Speaker #4: security are part of an overall digital lives. And through the platform, we can deliver in an agentic way, modular, white label through the different customer journeys, the value they require.
Speaker #5: to still be a reliable but engaging application. And in this case, Genie inside the application is a redesign of Norton 360 when customers spend more
Speaker #3: Because we want to make sure that we're preserving any of the volume upside that's coming through in a profitable way to reinvest for even more growth.
Speaker #5: time in the application to find or to set up the relevant apps and to make sure that they are protected the way they are.
Speaker #4: We definitely have ambition to serve more of that digital lives, but as I mentioned, it's earned one moment at a time. And every time
Speaker #3: So yes, as we're on a path in that through the lens of the synergies that Vincent just talked about to drive more and more and more adoption of our products, products on the marketplace that are transacting first-party versus third-party, there will be margin implications to all of those different products and segments that we've got within that business segment.
Speaker #5: perspective, bringing them more around the identity, the privacy, the ability to manage your reputation. All of that goes into
Speaker #4: we earn more and more of that trust, the next adjacent needs is an opportunity for us to go and help the
Speaker #4: consumer deliver it. When we talk about consumer, it's broadly defined. So it also includes your circle, your family, and it also includes I would
Speaker #5: line of people spending more time with the applications in a positive manner.
Speaker #4: say micro businesses
Speaker #4: Great.
Speaker #4: or solo preneurs, people who are who have a personal digital life and a professional life and sometimes those two overlap, they have a behavior in terms of
Speaker #3: And as they come together, we think we're going to be able to drive productivity, drive efficiencies, and really drive that overall margin architecture relatively consistent to where we're at today.
Speaker #4: purchases, and online behavior that's very equal to
Speaker #6: Thank you.
Speaker #4: a consumer, but it's for their professional earnings. And as you know, with Northern small businesses, and you'll see more of our portfolio will address some of
Speaker #2: Our next question comes from the line of Saket Kalia with Barclays. Your line is open. Please go ahead.
Speaker #4: those needs in a broadly defined
Speaker #5: The sweet spot of our current portfolio, right? When we acquire that, people are wondering what did we do? We're cleaning up and redesigning the platform.
Speaker #5: The sweet spot of our current portfolio, right? When we acquire that, people are wondering, what did we do? We're cleaning up and redesigning the platform.
Speaker #4: way.
Speaker #5: Great. Thank you so much.
Speaker #6: Okay, great. Hey, Vincent. Hey, Natalie. Thanks for taking my questions here. Nice quarter.
Speaker #2: Your next question comes from the line of Joseph Gallow with Jefferies. Your line is open.
Speaker #3: Thank you.
Speaker #5: To be much better.
Speaker #4: Thank you.
Speaker #6: Vincent, I just want to I just want to put a bow on some of your prepared comments earlier, which were super helpful, by the way, on capital allocation.
Speaker #5: And when we acquired Brightline, people were wondering how that's more and more proof of financial wellness and security.
Speaker #2: Please go ahead.
Speaker #6: Hey, guys. Thanks for the question. Can you talk a little bit more about the $100 million in revenue synergies? We have that target and the timing.
Speaker #6: So just zooming out, can we just talk about your appetite for big deals? One of the questions I got around interquarter was why this headline was coming out.
Speaker #6: Where do you expect that to materialize? Is that all financial wellness, or are you seeing any...
Speaker #5: And are part of an overall digital ride.
Speaker #5: And through the platform, we can deliver, in an agentless way—modular, white-labeled for the different customer journeys—the value that they require.
Speaker #6: other areas of unexpected benefit?
Speaker #4: No, of course. Yeah, let me quickly do it. So just for other people on phone, if they don't know what we're talking about, we identified that financial wellness coming from the underlying technology of
Speaker #6: Just given what seems like the healthiest organic growth that we've ever that we've seen in some time. So understanding what you said that we're not working on a transformative deal right now, maybe you could talk about what your appetite is for one of those deals in the future.
Speaker #5: Serve more of that digital life. But as I mentioned, earning one moment at a time, and every time we earn more and more of that, the next engagement needs
Speaker #4: Moneyline and engine to be
Speaker #4: cross-sold or spread across the overall gen portfolio and to an acceleration on top
Speaker #5: an opportunity for us to go and help the consumer deliver it.
Speaker #6: And what do you look for in candidates?
Speaker #4: Of that normal business growth rate, if you want. There are a few areas. Obviously, in my script, I've mentioned one obvious one. Northern Money Workplace is business.
Speaker #4: Okay, it all starts with the strategy. And I think you understand the strategy today. We have two growth engines. We have cybersafety, and we have the trusted-based solutions inside the trust-based solutions.
Speaker #5: When we talk about consumer, it's broadly defined. So it also includes your circle, your family, and it also includes, I would say, micro-businesses,
Speaker #5: social economy.
Speaker #4: We have the LifeLock and Moneyline, which are addressing direct consumer. And we have a marketplace. I do believe some of those categories are still underscaled compared to their potentials.
Speaker #5: They have a personal digital life and a professional life, and sometimes those overlap. They exhibit purchasing behaviors and online engagement.
Speaker #4: Channel. We see a very good three-line strategy that we then bring and sell with the Northern Life into the ongoing benefit channel, which we are very good first step, first reception, on the overall funnel.
Speaker #4: And we always look at opportunities to accelerate organic growth. If I can link to the prior question around your margin in trust-based solutions, that is a growing market.
Speaker #5: David, that's very useful to a consumer.
Speaker #4: We just introduced the
Speaker #4: product. They'll go to the onboarding season, as you know, in the employee benefit channels, and revenue
Speaker #5: Professional earnings. And as you know, we know those small businesses, and you'll see more of our portfolio will address some of those needs in a broadly defined way.
Speaker #4: will unroll over the following 12 months. The marketplace, the marketplace to be included in our various programs into LifeLock, into
Speaker #4: And so if we see margin room, as we manage the business at around a business model of 20% growth for 30% margin, we're trying to reinvest excess margin to try to acquire more customers with the proof point that we know we can move them through a higher percentage of their digital lives that we would serve over time thanks to the platform approach we have.
Speaker #5: Great, thank you so much.
Speaker #4: Your next question is from Yalow with Jefferies. Your line has opened. Please go ahead.
Speaker #4: Northern Money is another set of views. And then selling the marketplace to Gen partnerships like...
Speaker #4: Equifax, are all part of that synergies. We feel well on track. We had indicated last quarter that it would ramp in the second half, which it is.
Speaker #4: That is the recipe. That's what we're focusing on. There are areas of the market that we are underrepresented. I think we mentioned the small businesses.
Speaker #5: Financial wellness, or are you seeing any other?
Speaker #4: And would run its
Speaker #4: runway to accelerate its runway through fiscal year 2028.
Speaker #5: Other people are talking about how we identified that financial wellness is coming from the underlying technology of money management and banking.
Speaker #4: It's really the very small businesses, and it's about offering protection, but also maybe some of the financial rails. We have Family Line, and we constantly look at this market.
Speaker #6: That's really helpful and great to hear. Maybe just a follow-up.
Speaker #6: Operating margins were really impressive considering the mix shift in the business. What can the margin profile of trust-based solutions be over time? Especially as you move more into that high-margin first-party over time—especially as you move more into that high-margin first-party.
Speaker #5: And we are part of the overall Gen Digital Inc.
Speaker #4: As we explore those markets, we have recently talked to everybody. And I will not start with size. I would start is, can we learn something in exchange?
Speaker #5: acceleration on top of that normal.
Speaker #6: domain?
Speaker #3: Yeah, there's definitely a lot of puts and takes related to the mix of that segment, especially as you get into financial wellness.
Speaker #4: Um, there's a few areas, number one, obviously, modern workplace, built on a wide actually built on a white labeled Moneyline technology that we then bring and sell with the Northern Life lock into the employee benefit
Speaker #4: It could lead to a partnership. It could lead to something else. It could lead to a joint venture, or it could lead to an acquisition sometimes.
Speaker #3: In terms of the margin architecture, though, we've consistently said we're going to run that segment.
Speaker #4: We never really start from a transactional structure perspective. We more look like is there value to increase the value we can bring to the customer on both sides of the fence.
Speaker #3: at approximately 30% as we navigate through that mix. And we look at the different levels different areas of growth because we want to make sure that we're preserving any of the volume upside
Speaker #4: And I think you want us to go constantly look at that. And I will leave it at that. And as I mentioned, I will reinforce what I said today.
Speaker #5: on the overall funnel.
Speaker #3: that's coming through in a profitable way to reinvest for even more growth. So yes, as we're on
Speaker #5: The, um, upgrading season as you bring down pre-benefit channels, and Robinhood will absorb them following.
Speaker #4: We are not working today on a transformative deal.
Speaker #3: a path in that through the lens of the synergy Vincent just talked about, to drive more and more and more adoption of our products, products on the marketplace that are
Speaker #5: And the marketplace, the marketplace to be included in our various programs, also like what we've been offering—Money as
Speaker #6: Got it. Got it. Very helpful. Natalie, for my follow-up, maybe for you, you and the team have talked about moving more of the money line business towards a similar membership model as what's been so successful in cybersafety, right, with memberships like Norton 360.
Speaker #3: transacting first-party versus third-party, there will be margin implications
Speaker #5: another set of views, and then in the marketplace too, you can publish it like that. All part of that.
Speaker #3: to all of those different products and segments that we've got within that business.
Speaker #6: I think you touched on this a little bit in the prepared remarks, but just to kind of flush it out, where are we in that journey?
Speaker #3: segment. And as they come together, we think we're going to be able to drive productivity, drive efficiencies, and really drive that overall margin architecture relatively
Speaker #5: went on track and indicated last quarter, then would ramp in the second half, which it did, and would run its run rate or accelerate its run rate through fiscal year
Speaker #6: And at least with the assumption that a membership model, which is going to be more ratable, right, is kind of short-term pain for long-term gain.
Speaker #3: consistent to where we're at
Speaker #3: today.
Speaker #6: If that's the assumption, when do we start to see that impact the growth in that segment, if at all?
Speaker #6: Thank Any discussion? you.
Speaker #5: Follow-up operating margins.
Speaker #2: Our next question comes from the line of Saket Kalia with Barclays. Your line is
Speaker #3: Yeah, so from a membership perspective, it is definitely part of the investment thesis when we looked at Moneyline. We do believe, based on the years and years of success that we've got in the membership side, on the cybersafety segment, that we believe that we're able to offer an expanding portfolio of solutions when people are in a membership.
Speaker #2: open. Please go ahead.
Speaker #6: Okay, great. Hey, Vincent. Hey, Natalie. Thanks for
Speaker #6: Taking my questions here. Nice quarter.
Speaker #3: Thank you.
Speaker #4: Thank you.
Speaker #6: Vincent, I just want to I just want to put a bow on some of your prepared comments earlier, which were super
Speaker #6: Helpful, by the way, on capital.
Speaker #6: out, can we just talk about your appetite for big deals? One of the questions I got
Speaker #6: Approximately 30.
Speaker #3: We believe that on a go-forward basis, when you think about AI and think about personalization, you think about healthy and productive engagement with your consumers, you want to be as inclusive of all the solutions that they need as possible.
Speaker #6: Around interquarter was why this headline was coming out, just given what seems like the healthiest.
Speaker #6: Because we want to make sure that any of the value that we provide is coming through in a profitable way.
Speaker #6: organic growth that we've seen in some time. So understanding what you said that we're not working on a transformative deal right now, maybe you
Speaker #6: So yes, we're on a path to do that.
Speaker #3: And a membership offering allows you to do just that, not necessarily be going after purchase after purchase in more of the point products, but able to offer a much more inclusive offering to the consumers.
Speaker #6: could talk about what your appetite is for one of those deals in the future. And
Speaker #6: We have more and more adopters of our products, marketplaces, and transactors.
Speaker #6: What do you look for in candidates?
Speaker #4: Okay, it all starts with the strategy. And I think you understand the strategy today. We have two growth We'll start with the strategy. Um, strategy today with 2 growth campaigns.
Speaker #6: There will be margin in all of those different products.
Speaker #5: It also allows us to get to know them so that when we do the predictive, when we do the behavioral analytics, to be personalized and in constant contact with consumers, we know we want to move towards membership.
Speaker #4: engines. We have cybersafety, and we have the trusted-based solutions inside the trust-based solutions. We have the Inside, inside, it's just based on the graph of Moline, which I just need to like LifeLock and Moneyline, which are addressing direct consumer.
Speaker #6: Together.
Speaker #4: And we have a marketplace. I do believe some of those categories are still underscaled compared to their potentials. we have a marketplace. And I do believe some of the categories are still underexplored compared to the potential, and we always look at And we always look at opportunities to accelerate organic growth, if I can link to the prior question around your margin in trust-based solutions.
Speaker #6: drive that overall margin architecture relatively consistent to where we're at today.
Speaker #5: So where are we at on Moneyline one? We definitely are in the market, and we're scaling. I would say in terms of size and scale of the existing user base, we're just we're seeing green shoots, but it's not material yet.
Speaker #6: Thank you.
Speaker #4: That is To accelerate organic growth. I can link to the prior question about the margin and trust-based solutions. a growing market. And so if we see margin room, as we manage the business around a business model of 20% growth, 30% margin, we're trying to reinvest excess
Speaker #5: Yeah, with Barclays. Your line is open. Please go ahead.
Speaker #5: But we are definitely out in the market testing and scaling. And yeah, so far, so good.
Speaker #4: Hey Vincent, hey Natalie, thanks for taking my questions here. Nice quarter.
Speaker #4: Margin to try to acquire more customers, with the proof point that we know we can move them through a higher percentage of their digital lives that we would serve.
Speaker #6: Very helpful. Thanks, guys.
Speaker #4: I just want to put a bow on some of your comments earlier, which were super helpful, by the way.
Speaker #4: Thank you.
Speaker #2: Your next question comes from the line of Meta Marshall with Morgan Stanley. Your line is open. Please go ahead.
Speaker #4: Over time, thanks to the platform approach we have, that is the recipe. That's what we're focusing on. There are areas of the market that we are—yeah, that is what we want.
Speaker #5: Yeah, okay.
Speaker #1: Great. Thanks. This is the partner channel continues to be a leading source of growth. Are there particular partners that you're adding that are more incremental, that are more impactful, or is it just kind of existing partners doing well with expanding their footprints?
Speaker #4: About your big deal. You know, one of the questions I have around the ultrafortress
Speaker #5: Why this is the healthiest organic growth
Speaker #4: And it's about offering protection, but also maybe some of the
Speaker #5: So understanding what you said, that product is not working right now, maybe talk about what you're after.
Speaker #4: financial rails. We have some Moneyline, and we constantly look at this market. As we explore those markets, we obviously talk to everybody. And I will not start with size.
Speaker #5: Yeah, I would say it's I would answer the question through the segments. So from a cybersafety segment perspective, the partner channels that we've known for a longer period of time, right, like we're more familiar with the employee benefits channel, XSP, Telco, etc., those are still very much high contributors to growth.
Speaker #5: Those deals in the future, and what do you look for?
Speaker #4: It could lead to a partnership. It could lead to something else. It could lead to a joint venture, or it could lead to an It could lead to a product, it could lead to something else.
Speaker #5: And the users that we get from them, they're different cohorts of customers, different types of engagements. But at the end of the day, it's a geo-expansion.
Speaker #4: Both sides of the fence. And I think you want us to go constantly look at that. And I will leave it at that. As I mentioned, I will reinforce what I said today.
Speaker #5: It's an expansion into cohorts that we don't believe we would as effectively reach from a direct perspective. And so we continue to foster invest and scale those channels in a very, very healthy way.
Speaker #4: We are not working today on
Speaker #4: a transformative deal.
Speaker #5: If we see margin, as we manage the business at around a business model of 20% growth with 30% margin, we're trying to reinvest that margin.
Speaker #6: Got it. Got it. Very helpful. Natalie, for my follow-up, maybe for you: You and the team have talked about moving more of the Moneyline...
Speaker #5: And then from a financial wellness perspective, of course, as we're adding more and more and more partners on both sides of the marketplace and engine equation, so to speak, or transaction, that's where we're really seeing a lot of additional growth, a lot of diversification, and just the ever-expanding products that we're able to solution and offer the customers in the marketplace.
Speaker #6: business towards a similar membership model as what's been so
Speaker #5: Acquire more customers with the proof point that we know we can move them through a higher percentage of their digital life, which we need to build over time.
Speaker #6: successful in cybersafety, right, with memberships like Norton 360. I think you touched on this a little bit in the prepared remarks, but just
Speaker #6: to kind of flush it out, where are we in that journey? And at least with the assumption that a membership model, which is going to be more ratable, right, is kind of short-term pain for long-term gain.
Speaker #4: There are areas of the market that we are underrepresented. I think we mentioned the underrepresented. I think we mentioned the small businesses. It's really the very small businesses.
Speaker #4: And I would add that it's not different than the direct-to-consumer. On the cybersafety side, we continue to sell more of our comprehensive portfolio into the current existing base.
Speaker #5: the small businesses. It's really the growth of small businesses, and it's about offering protection, but also maybe some of the financial rails we have from MoneyLion.
Speaker #6: If that's the
Speaker #6: assumption, when do we start to see that impact
Speaker #6: The growth in that segment, if at all?
Speaker #4: And on the trust-based solutions, it's about expanding into new channels, into new customer cohorts.
Speaker #3: Yeah. So from a membership perspective, it is
Speaker #4: And constantly look at these markets. As we explore these markets, we have these proof of models. And I want to start with Stripe. I would start it— maybe we learned something in, I would start as, can we learn something in exchange?
Speaker #3: Definitely part of the investment thesis when we looked at Moneyline. We do believe, based on the years and years of success that we've had in the membership side, on the cybersafety segment, that we believe that we're...
Speaker #1: Got it. And then just maybe as a follow-up question on the trust-based solutions margins, understanding kind of the investment to both in marketplace products and just in kind of marketing for that product.
Speaker #4: So it could lead to an acquisition. We never really stop. acquisition sometimes. We never really start from a transactional structure perspective. We more look like is there value to increase the value we can bring to the customer on
Speaker #3: able to offer an
Speaker #3: expanding portfolio of solutions when people are in a membership. We believe that on a go-forward basis, when you think about AI and think about personalization, you think about healthy and productive engagement with your consumers, you want to be as inclusive of all the solutions that they need as possible.
Speaker #5: From a structure perspective, it will more look like, is there value to increase the value we can bring to the customer on both sides of the fence?
Speaker #1: But do you feel like you are managing towards keeping that 30% margin, or you would sacrifice that margin a little bit to accelerate growth?
Speaker #5: And I think Q1, as
Speaker #1: Just how should we think about kind of investments that you're making and operating margins in that business going forward? Thanks.
Speaker #5: And as I mentioned, I will reinforce what I said today. We are not working today on a transformative deal.
Speaker #3: And a membership offering allows you to do just that—not necessarily.
Speaker #4: I would definitely continue to manage on a business model, i.e., long-term. And every quarter and every week and every month, I think we're going to make adjusted decisions based on what we see in the market is managing trust-based solutions on that rule of 50 with 30% margin for 20% growth.
Speaker #3: be going after purchase after purchase in more of the point products, but able to offer a much
Speaker #5: Got it. Very cool. Natalie, my follow-up question may be for you. You and the team have talked about moving more of the MoneyLion business towards
Speaker #3: more inclusive offering to the consumers.
Speaker #5: A similar membership model as what's been so successful inside of Facebook.
Speaker #5: It also allows us to get to know them so that when we do the predictive, when we do the behavioral analytics, to—
Speaker #4: If we see an acceleration in the market, we will capture it, but we'll manage with that in mind. There are different sort of investments.
Speaker #5: I think you mentioned this a little bit in your remarks, but just to kind of flesh it out, when are we investing?
Speaker #5: be personalized It also allows us to know that when we do the predictive and we do the behavioral analytics to be personalized and
Speaker #4: As I mentioned, in Moneyline, we need to elevate the brand, and really go and reach new cohorts. And then move them into the membership, which is a whole journey by itself.
Speaker #5: and in constant
Speaker #5: And, at least with the assumption that the membership model is going to be more radical, right? They've got a short-term game and a long-term game.
Speaker #5: Contact with the consumers, we know we want to move towards membership. So where are we at on Moneyline One? We definitely are in the market, and we're scaling.
Speaker #5: If that's the assumption, when do we start to
Speaker #5: See that impact the growth in that segment, if at all?
Speaker #5: I would say in terms of size and scale of the existing user base, we're
Speaker #4: In LifeLock, it's all about moving that into the agentic solutions. And in the engine, it's about getting more verticals into the marketplace to make it more relevant to more partners.
Speaker #5: We're seeing green shoots, but it's not material yet. We are definitely out in the market testing, and
Speaker #6: From a membership perspective, it is definitely part of the
Speaker #5: Scaling, and yeah, so far, so good.
Speaker #4: All of that requires investment, as you're going to grow. As you know, for our business model, we're not a business that's going to grow to get a little bit of top line and lose billions in the bottom line.
Speaker #6: Very, very helpful. Thanks, guys.
Speaker #4: Thank you.
Speaker #2: Your next question comes from the line of Meta Marshall with Morgan Stanley. Your line is open. Please go
Speaker #4: Because that's not the market dynamic we have. And so expect us to continue to move towards durable growth with a disciplined margin approach.
Speaker #6: offer an expanding
Speaker #6: portfolio.
Speaker #2: ahead.
Speaker #1: All right. Thanks. This is a partner channel continues to be a leading market growth. Are there particular partners that
Speaker #1: Great. Thank you.
Speaker #1: Are you adding partners that are more incremental, that are more impactful, or is it just kind of existing partners?
Speaker #2: Your next question comes from the line of Richard Poland with Wells Fargo. Your line is open. Please go ahead.
Speaker #6: wanting to be as inclusive of all the solutions that they need as possible, and the membership offering allows them to do just that. It doesn't necessarily have to be, you know,
Speaker #1: doing well with expanding their footprints?
Speaker #6: Hey, thanks for taking my question. I think it's encouraging to continue to see the cybersafety business hold in in that mid-single-digit growth profile. I guess there's a lot of talk about the expansion with the Norton bundles, I'm curious, any color or commentary just around how we should think about the new user funnel on that side of the business?
Speaker #6: going after purchase after purchase in more of the free products, but it will help us get a much more inclusive offering.
Speaker #5: Yeah, I would say it's I would answer the question through
Speaker #5: So, from a—yeah, I would say the question is the segment.
Speaker #5: cybersafety segment perspective, the partner channels that we've known for a longer period of time, right, like we're more familiar with the employee benefits channel, XSP, Telco, etc., those are
Speaker #5: high contributors to growth. And the users that we get from them, they're different cohorts of customers, different types of engagements. But at the end of the day, it's a geo-expansion.
Speaker #6: in constant contact.
Speaker #4: Yeah, let me take it. So another question I get, which is very similar to yours, is, is 5%, which, as you know, is the growth rate we manage again from a business model perspective, mid-single-digit growth rate at 60% margin, is that kind of a ceiling, or is there more?
Speaker #6: You know, we want to move forward.
Speaker #6: So where are we at on Moneyline One? Definitely our go-to-market has been scaling. I would say in terms of size and scale of the existing user base, we, you know, we're seeing
Speaker #5: It's
Speaker #5: an expansion into cohorts that we don't believe we would as effectively
Speaker #5: reach from a direct perspective. And so we continue to foster invest and scale those channels in a very, very healthy way. And then from a financial wellness
Speaker #6: But we were definitely out in the market testing scaling.
Speaker #4: And I would say there could be more. But I want to see it. And the whole topic of agentic that we've discussed for half of these earnings is part of that view where Norton can really stretch and be a lot of things with the flagship product on the suite, but moving into your Norton reputation management, your Norton money, and Norton Genie could be your security agentic solutions.
Speaker #5: perspective, of course, as we're adding more and more and more partners on both sides of the marketplace and engine equation, so to speak, or transaction, that's
Speaker #5: where we're really seeing a lot of partners on both sides of the marketplace engine equation, so to speak, or transaction.
Speaker #4: Your next question comes from the line of Metta Marshall with Morgan Stanley. Your line is open. Please go ahead.
Speaker #5: additional growth, a lot of diversification, and just the ever-expanding products that we're able to
Speaker #5: solution and offer the customers in the marketplace.
Speaker #6: Great, thanks. Um, this is a partner panel. It continues to be already in growth. Are there particular partners that you're adding?
Speaker #4: And so depending on the market and market trends we see, especially on the agentic side, I would think there is definitely a great room.
Speaker #4: And I would add that it's not different than the direct-to-consumer. On the cyber safety side, we continue to sell more of our
Speaker #6: that are more impactful, or is it just kind of existing partners doing well with
Speaker #4: Today, we have strong renewal rates. We have good new customer acquisition, but two position it as a mid-single-digit. We're hopeful, but hopeful doesn't make a plan.
Speaker #4: comprehensive portfolio into the current existing base. And on the trust-based solutions, it's about expanding
Speaker #4: into new channels, into new customer portals.
Speaker #4: So let's just continue to unveil innovations and see where the market trends go for Norton. Before we explain more.
Speaker #1: Got it. And then just maybe as a follow-up question on the trust-based solutions margins, understanding kind
Speaker #6: So from a cyber standpoint,
Speaker #1: of the investment to both in marketplace products and just in kind of marketing for that product. But do you
Speaker #6: Channels that we've known for a longer period of time, right? Like the production channel, etc. Those are still very much high contributors.
Speaker #6: Awesome. That's very helpful. And I guess when we just think about the puts and takes of a more balanced macro environment, I think on one hand, there is kind of this building concern around AI.
Speaker #1: Do you feel like you are managing towards keeping that 30% margin, or would you sacrifice that margin a little bit to accelerate growth? Just how should we think about...
Speaker #6: growth and usage that we get from them.
Speaker #6: There are different cohorts of customers, different types of engagements, but at the end of the day, it's a geo-expansion.
Speaker #6: And so I could assume that that could drive demand for that platform. But on the flip side, is there anything else to just kind of think through when it comes to what you're seeing within the consumer just overall health right now?
Speaker #6: Cohorts that we don't believe we would as effectively reach out to.
Speaker #1: kind of investments that you're making
Speaker #1: And operating margins in that business going forward? Thanks.
Speaker #6: perspective. And so we continue to foster, invest, and scale this channel in a very, very healthy way. And then, from a financial wellness perspective, of course, as we're adding more and more and more
Speaker #4: I would definitely continue to manage on a business model, i.e., long-term. And every quarter, every week, and every month, I think we're going to make adjusted decisions based on what we see in the
Speaker #4: Oh, so I definitely would say that the agentic movement, the use of agents is creating angst. And I think is underlying structural growth shift for us to make the protection product more relevant tomorrow than yesterday.
Speaker #4: market is managing trust-based solutions on that rule of 50 with 30% margin for 20% of growth. If we see an acceleration in the
Speaker #6: That's where we're really seeing a lot of additional growth.
Speaker #4: Of course, the product has to adapt. The use case has to reach all the consumers from a risk perspective. Today, it's more contained the enterprise, but it's only a matter of time.
Speaker #4: Market, we will capture it, but we'll manage with that in mind. There are different sorts of investment. As I mentioned, in Moneyline, we need to elevate the brand and really...
Speaker #6: Just the ever-expanding products that we're able to solution.
Speaker #4: When it comes to the macro level, a tight environment, a difficult environment for consumers only creates more needs to better understand your cash flow, when you earn your paycheck, and how does that align to your spend?
Speaker #4: go and reach new cohorts. And then move them into the membership, which is a whole journey by itself. In LifeLock, it's all about moving that into the agentic
Speaker #5: And I would add that it's not different than the direct-to-consumer. On the cybersecurity side, we continue to sell more of our comprehensive portfolio into the
Speaker #5: ...current existing base. And on the trust-based solutions, it's about expanding into new channels and new customer cohorts.
Speaker #4: solution. And in the engine, it's about getting more vertical into the marketplace to make it more relevant to more partners. And all of that
Speaker #4: And more solutions for financial wellness to optimize that environment. So we see those two trends, if you want, currently happening. As Tailwind for our business.
Speaker #6: Got it. Maybe as a follow-up question on the trust-based solutions market, understanding kind of the investment.
Speaker #4: requires investment, as we're going to grow. As you know, for our business model, we're not a business that's going to grow to get a little bit of top line and lose billions in the bottom
Speaker #5: Yeah, and I would say you can see that evidence in some of the prepared remarks, as well as our metrics whether you're talking about the CS side, so the cybersafety segment with the cross-sell penetration never being higher, the upsell and the growth coming from the higher-tier memberships as current, as well as new members elect to go higher and higher in that protection.
Speaker #6: Both the marketplace products and the kind of marketing for that product. But do you feel like you are, like...
Speaker #4: line, because that's not the market dynamic we have. And so, expect us to continue to move towards durable growth with a disciplined margin.
Speaker #6: advantage of keeping that 30% margin, or you would sacrifice that margin a little bit to accelerate growth? Just how should we think about kind of investments that you're making and
Speaker #4: approach.
Speaker #1: Great. Thank you.
Speaker #2: Your next question comes from the line of Richard Poland with Wells
Speaker #6: operating margin?
Speaker #5: And with that upselling into higher R2 tiers, and then as Vincent mentioned, the financial wellness, we've seen originations and Instacash continue on the PFM side, continue to grow the matched inquiries that you heard in my prepared remarks really point to not only volume at the top of the funnel for consumers being interested in new financial products, but then our matched inquiries basically give you a signal that the demand and the supplier coming together in a meaningful way in the engine and the marketplace.
Speaker #2: ahead.
Speaker #5: I would definitely tell you to manage on the business model, i.e., long term. And every quarter, every week, and every month, I think we're going to make adjusting decisions based on what we see in the market.
Speaker #6: Hey, thanks for taking my question. I think it's encouraging to continue to see the cybersafety
Speaker #6: business holds in that mid-single-digit growth profile. I guess there's a lot of talk about the expansion with Norton bundles. I'm curious,
Speaker #5: Managing trust-based solutions on that goal of 50%, 30% margin, and 20% growth. If we see an acceleration in the market, we will capture it.
Speaker #6: any color commentary around how we should think about the new user you think about the new user funnel on that side of the— funnel on that side of the business?
Speaker #5: But we'll manage with that in mind. There's different sort of investments. As I mentioned, in Moneyline, we need to elevate the brand and we need to do it with a new portal and
Speaker #4: Yeah, let me take it. So another question I get, which is very similar to yours, is, is 5%, which, as you know, is the growth rate
Speaker #5: Then move them into the membership, which is a whole journey by itself. In LifeLock, it's all about moving that into the agentic solutions and in the engine.
Speaker #5: So from all things, all those types of metrics bundled with what Vincent talked about more in the medium to long term and the trends and the economic signals, and then evidenced in the delivery in our quarterly results is how we get confidence in that.
Speaker #4: We manage, again from a business model perspective, a mid-single-digit growth rate at 60% margin. Is that kind of a ceiling, or is there more? And I would say there could be more.
Speaker #5: It's about getting more verticals into the marketplace to make it more relevant to more partners. All of that requires investment.
Speaker #4: But I want to see it. And the
Speaker #4: The whole topic of agentic that we've discussed for half of these earnings is part of that view where Norton can really stretch and be a lot of things with the flagship.
Speaker #6: Great. Very clear. Thank you both.
Speaker #5: As you know, for our business model, we're not a business that's going to grow to get a little bit of supply and lose billions in the bottom line, because that's not the market dynamic we have.
Speaker #4: Thank you.
Speaker #3: Thanks.
Speaker #4: Product on the suite, but moving half of the journey.
Speaker #4: into Norton reputation management, Norton money, and Norton Genie could be your security agentic solutions. And so depending on the market and market trends we see, especially on the agentic side, I would think there is
Speaker #5: Expect us to continue to move toward durable growth with a disciplined margin approach. Great, thank you.
Speaker #4: Definitely a great room. Today, we have strong renewal rates, we have good new customer acquisition, but to position it as a mid-single digit, we...
Speaker #4: Your next question comes from the line of Richard Cohen with Wells Fargo. Your line is open. Please go ahead.
Speaker #4: Hope for it, but hoping for it doesn't make a plan. So let's just continue to unveil innovations and see where the market trends go for Norton.
Speaker #5: Thanks for taking my question. I think it's encouraging to continue the cyber safety business even in that
Speaker #4: Before
Speaker #4: we explain more.
Speaker #5: Profile. I guess there's a lot of talk about expansion of investment bundles. I'm curious, any color commentary around how...
Speaker #6: Awesome. That's very helpful. And
Speaker #6: I guess when we just think about the puts and takes of a more balanced macro for the more balanced macro environment, I think on more environment, I think on one hand, there is kind of this building concern
Speaker #6: Around AI and psych, I'd assume that could drive demand for that platform. But on the flip side, is there anything else to just kind of think...
Speaker #5: Yeah, let me take it. So another question I get: curious to know if you're using it—25%, which, as you know, is a growth rate we imagine from a business model perspective,
Speaker #6: through, when it comes to what you're seeing within the consumer,
Speaker #6: just overall health right now?
Speaker #5: Margin. Is that kind of a ceiling, or is there more? And I would say there could be more, but I want to see it.
Speaker #4: Oh, so I definitely would say that the agentic movement, the use of agents, is creating angst. And I think—
Speaker #5: And the whole topic of the Gen Digital Inc.
Speaker #4: There is an underlying structural growth shift for us to make the protective product more relevant tomorrow than yesterday. Of course, the products have to adapt; the use case has to reach all the
Speaker #5: It's part of that where Norton can really stretch and be a lot of things. They've got such a product on the screen. We're moving into remote working.
Speaker #4: consumers from a risk perspective. Today, it's more contained within the enterprise, but it's only a matter of time. When it comes to the macro level, a tight environment, a difficult
Speaker #5: And so, depending on the market and more opportunities, especially on the agenda side, I think there is definitely great work today.
Speaker #4: The environment for consumers only creates more needs to better understand your cash flow—when you earn your paycheck, and how that aligns to your spend.
Speaker #5: Strong renewals, we have good new customer acquisition, but to position it as a new thing that we did, we hope not. We hope it doesn't make up much.
Speaker #4: And more
Speaker #4: Solutions for financial wellness to optimize that environment. So we see those two trends, if you want, currently.
Speaker #5: So let's just continue to unveil innovations and see where the market goes for Norton before we explain more.
Speaker #4: happening as tailwind for our business.
Speaker #5: Yeah, and I would say you can see that evidence in some of the prepared remarks as well.
Speaker #5: That's very helpful. And I just— we just think about...
Speaker #5: as our
Speaker #5: metrics, whether you're talking about the CS side—so the cyber safety segment—with the cross-sell penetration never being higher, the
Speaker #5: Okay, I'm like, assume that
Speaker #5: Upsell and the growth are coming from higher-tier memberships, as current as well as new members elect to go higher and higher in that protection.
Speaker #5: platform. So I'm just looking at, is there anything else to just kind of think through when it comes to the security...
Speaker #5: Within the consumer, just overall health right now?
Speaker #5: And with that, upselling into higher R2.
Speaker #5: Tiers, and then, as Vincent mentioned, the financial wellness—we've seen originations and instant cash continue on the PFM side, continue to grow. The matched inquiries that you heard in my prepared remarks really point to not only volume at the top of the funnel for consumers being interested in new financial products, but then our matched inquiries—
Speaker #5: So I definitely would say that the Gen movement, the use of digital trading banks, and, I think, is underlying structural...
Speaker #5: for us to make the protection product more relevant tomorrow than yesterday. Of course, the product has to adapt, the use case has to reach; it becomes
Speaker #5: It's only a matter of time. When it comes to the macro level, it's a tight environment—a difficult environment for consumers.
Speaker #5: Basically, it gives you a signal that the demand and the supplier are coming together in a meaningful way in the engine and the marketplace. So, from all teams, all those types of metrics, bundled with what Vincent talked about more in the medium to long term — the trends and the economic signals — and then evidenced in the delivery in our quarterly...
Speaker #5: We only create more need to better understand your cash flow when you earn your paycheck and how that aligns to your plan, and more interest for financial.
Speaker #5: Wellness, optimized environment—those two trends, if you will, are currently happening as tailwinds for...
Speaker #5: Results are how we get confidence in that.
Speaker #6: Great. Great, very clear. Thank you both. Very clear. Thank you both.
Speaker #6: Yeah, that was—you know, you can see that.
Speaker #4: Thank you.
Speaker #5: Thanks.
Speaker #2: We have reached the end of the Q&A session. This concludes today's call. Thank you for your participation.
Speaker #6: Whether you're talking about the CS side,
Speaker #6: segment with cross-sell penetration that would be higher, upsell and growth coming from the higher...
Speaker #6: New members will have to go higher and higher in that presentation, and with that, go into higher ARPU tiers, and then
Speaker #6: Financial products and our matched inquiries are basically
Speaker #6: Evidence in the delivery in our, in our quarterly results, is how we get confidence in that.
Speaker #6: We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.
