Gen Digital Inc Q3 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Roger Boyd - UBS Equities - Analyst : Great. I wanted to touch on retention rates, the directional trends you saw there. I know you mentioned on the cohort level all retention rates came up but were impacted by the higher mix of mobile year one customers. Just how do you reconcile that with the still improving ARPU numbers? And then given the continued strength of mobile in international channels, what are you expecting to see around overall retention as we move forward from here? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 30, 2025 / 10:00PM, GEN.OQ - Q3 2025 Gen Digital Inc Earnings Call

Question: Andrew Nowinski - Wells Fargo Securities, LLC - Analyst : Great. Maybe just a quick clarification. So the Cyber Safety Bookings growth certainly is still strong, at 4% this quarter. I think that maybe was down from last quarter at 5%. But given what you just said about ARPU being up, retention up, new customer adds up, I guess, was that deceleration just entirely due to that onetime bump from the National Public Data breach you saw last quarter?

Question: Andrew Nowinski - Wells Fargo Securities, LLC - Analyst : That makes sense. If I could just squeeze a follow-up in on the MoneyLion acquisition. I know it's not closed yet, and there's not much color you can provide, but on the financial side. But I'm just wondering at a high level, it seems like maybe their customer base is a very different demographic relative to the customers that are buying the -- Norton membership. So I'm just wondering if you could just help us understand where you see the synergies between the two businesses?

Question: Saket Kalia - Barclays - Analyst : Natalie, maybe for you, just a little bit of a housekeeping question. Great to see the full year revenue guide go up a little bit. Can you just talk about any incremental FX movement and how that's impacting the full year guide, if at all? I know that it was a little impactful to ARPU in the quarter. Can you just level set kind of any impact to the full year revenue guidance if at all?

Question: Saket Kalia - Barclays - Analyst : Got it. That's helpful. Vincent, if I can maybe squeeze in a follow-up. Maybe -- there was so much innovation that you talked about in your prepared remarks, right, just around whether it's Genie or other things in terms of finding scams, and it really adds to some of those higher-end kind of bundles like Norton 360. Can you just sort of give us a state of the state in terms of what percentage of the base is kind of using Norton 360 now? And how you think that can trend going forward?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : It's Dan Bergstrom on for Matt Hedberg. Sounds like you're having good success with the mobile customers purchasing Norton 360. You called that out in the prepared remarks. Maybe a little bit more on what you're doing there? Some of the areas that you could lead into to help drive that mobile adoption of 360?

Question: Dan Bergstrom - RBC Capital Markets - Analyst : That's great. And then, Vincent, could you talk a little bit about the customization and personalization of offerings? I know that's something that remains underway maybe what are some of those personalization efforts that have been most impactful to you? And then maybe where are we in that journey?

Question: Hamza Fodderwala - Morgan Stanley - Analyst : Natalie, just a quick one for you. I was wondering if you could give us a sense of how you're thinking about balancing capital allocation between debt paydown, buyback, given the pending acquisition of MoneyLion. I know there's a bit of a pause there right now, but once you do start to digest that, how should we think about modeling that on a longer-term basis?

Question: Tomer Zilberman - BofA Global Research - Analyst : I actually wanted to go back and touch on ARPU. So you talked about a $0.01 sequential improvement. Currency had a $0.01 negative impact, so call it maybe $0.02 normalized sequential improvement. Are you seeing that kind of more broad-based across your cross-sell and upsell momentum? Or is there anything specific that you can call out to happen this quarter that helped improve the numbers? I know you talked about an increasing number of mobile customers adopting Norton 360, but anything additional you have would be helpful.