Gen Digital Inc (GEN) 2025 Q1 法說會逐字稿

Good afternoon, everyone. Thank you for standing by. My name is Tamia, and I will be your conference operator today. This call is being recorded. (Operator Instructions) After the speakers' remarks, there will be a question and answer session. At this time for opening remarks, I'd like to pass the call over to Jason Starr, Head of Investor Relations.

大家下午好。謝謝你的支持。我叫塔米亞，今天我將擔任你們的會議操作員。此通話正在錄音。（操作員說明） 演講者發言後，將進行問答環節。現在，我想將電話轉給投資者關係主管賈森·斯塔爾 (Jason Starr) 致開幕詞。

Thank you Tamia. Good afternoon. Welcome to Gen's first quarter of fiscal year 2025 earnings call. Joining me today are Vincent Pilette, CEO, and Natalie Derse, the CFO. As a reminder, there will be a replay of this call posted on the Investor Relations website along with our slides and press release.

謝謝塔米亞。午安.歡迎參加 Gen 2025 財年第一季財報電話會議。今天和我一起的還有執行長 Vincent Pilette 和財務長 Natalie Derse。謹此提醒，投資者關係網站上將發布本次電話會議的重播以及我們的投影片和新聞稿。

I'd like to remind everyone that during this call, all the references to the financial metrics are non-GAAP and all growth rates are year over year unless otherwise stated. A reconciliation of non-GAAP to GAAP measures is included in our press release and earnings presentation, both of which are available on our IR website at investor. gendigital.com. We encourage investors to monitor this website as we routinely post investor oriented information such as news and events and financial filings.

我想提醒大家，在本次電話會議中，除非另有說明，所有提及的財務指標均為非公認會計準則，所有增長率均為逐年增長率。我們的新聞稿和收益報告中包含了非公認會計準則與公認會計準則衡量標準的對賬，兩者均可在我們的投資者關係網站上找到。 gendigital.com。我們鼓勵投資者監控本網站，因為我們定期發布面向投資者的信息，例如新聞和事件以及財務文件。

Today's call contains statements regarding our business financial performance and operations including the impact of our business and industry that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our current expectations. Those statements are based on current beliefs, assumptions, and expectations as of today's date, August 1, 2024.

今天的電話會議包含有關我們業務財務業績和營運的聲明，包括我們業務和行業的影響，這些聲明可能被視為前瞻性聲明，此類聲明涉及風險和不確定性，可能導致實際結果與我們當前的預期存在重大差異。這些陳述是基於截至今天（2024 年 8 月 1 日）的當前信念、假設和預期。

We undertake no obligation to update these statements as a result of new information or future events. For more information, please refer to the cautionary statements in our press release and the risk factors in our filings with the SEC and in particular our most reach reports on Form 10-K and Form 10-Q.

我們不承擔因新資訊或未來事件而更新這些聲明的義務。欲了解更多信息，請參閱我們新聞稿中的警示聲明以及我們向 SEC 提交的文件中的風險因素，特別是我們關於 10-K 表格和 10-Q 表格的最廣泛的報告。

And now I'll turn the call over to Vincent.

現在我將把電話轉給文森。

Thanks, Jason, and welcome, everyone, to our Q1 earnings call. We have started fiscal '25 on a good note was operating KPIs supporting our long-term aspirations. We grew cyber safety bookings 4% in constant currency and reached a record direct customer count of 39.3 million, up 1.1 million year-over-year.

謝謝傑森，歡迎大家參加我們的第一季財報電話會議。我們在 25 財年伊始就取得了良好的成績，營運關鍵績效指標 (KPI) 支持了我們的長期願望。以固定匯率計算，我們的網路安全預訂量增加了 4%，直接客戶數量達到創紀錄的 3,930 萬，年增 110 萬。

Additionally, ARPU is up sequentially and year over year in constant currency and retention reach 78%, a Gen record, supported by record level in LifeLock and Avast. Our consistent focus on executed trend resulted in another double-digit growth quarter for earnings per share at $0.53, in Q1, up 15% in constant currency. I'm proud of our team for delivering these results and for our continued focus on evolving cyber safety for consumers in a very dynamic threat landscape.

此外，以固定匯率計算，每位使用者平均收入 (ARPU) 連續上升，年成長，留存率達到 78%，創下 Gen 記錄，並得到 LifeLock 和 Avast 創紀錄水準的支持。我們對執行趨勢的一貫關注導致第一季每股收益再次實現兩位數成長，達到 0.53 美元，以固定匯率計算成長 15%。我為我們的團隊取得了這些成果，並為我們在瞬息萬變的威脅環境中持續專注於為消費者不斷發展的網路安全而感到自豪。

Before Natalie walks you through the details of our results. I would like first to remind everyone about our strategic opportunity and the steady progress we're making to achieve our cyber safety mission. Whether it is a biometric payment at the retail store or our personal performance data, combined with the recommendation algorithms to buy sportswear, it seems like not a day goes by where we don't do something digitally without sharing more personal information.

在娜塔莉向您詳細介紹我們的結果之前。我首先想提醒大家我們的策略機會以及我們為實現網路安全使命所取得的穩步進展。無論是零售店的生物辨識支付還是我們的個人表現數據，再加上購買運動服的推薦演算法，似乎我們每天都會在不分享更多個人資訊的情況下以數位化方式做某件事。

And while these experiences can be convenient, our growing digital life leads to the proliferation of sensitive personal information, which is difficult to properly safeguard as it is increasingly out of our control. We depend on our banks, our government institutions and mobile providers and our retailers to protect our data. And yet, as we can all see by the ever increasing number of data breaches in all industries, it is tremendously hard for them to do.

雖然這些體驗可能很方便，但我們日益增長的數位生活導致敏感個人資訊的擴散，這些資訊很難得到適當的保護，因為它越來越脫離我們的控制。我們依靠銀行、政府機構、行動提供者和零售商來保護我們的資料。然而，正如我們從各行業不斷增加的資料外洩事件中看到的那樣，這對他們來說是非常困難的。

In just the first half of 2024, we have seen more than 2,000 reported breaches per month across the globe. And those are just the reported breaches, not to mention the many that occur across very small businesses, the local doctor offices, schools and shops that also get access to our sensitive personal data.

光是 2024 年上半年，我們就發現全球每月報告的違規事件超過 2,000 起。這些只是報告的違規行為，更不用說在非常小的企業、當地醫生辦公室、學校和商店中發生的許多違規行為，它們也可以存取我們的敏感個人資料。

Recent global breaches highlighted the growing threat of cyber-attacks, which are often targeted at exploding human vulnerabilities. In the aftermath of such events, there was a surge in impersonation scams, suspicious e-mails and text messages designed to trick people into sharing personal information.

最近的全球違規事件突顯了網路攻擊的威脅日益增長，這些攻擊往往針對爆炸性的人類漏洞。此類事件發生後，旨在誘騙人們分享個人資訊的冒充詐騙、可疑電子郵件和簡訊激增。

The rapid development of generative AI has made it easier for criminals to create more personalized and believable scans, including deepfake clones. The potential scope of these threats is broadening, resulting in significant economic and reputational damages.

生成式人工智慧的快速發展使犯罪分子更容易創建更個人化和可信的掃描，包括深度偽造克隆。這些威脅的潛在範圍正在擴大，導致重大的經濟和聲譽損失。

It is clear to anyone paying attention that these threats are creating a dynamic threat landscape, making consumers worldwide more valuable than ever to real threats to their privacy, identity, and financial assets. And the even more careful individual people, we struggled to control where their personal data lives and will have little to no visibility into our governments, companies and small businesses protect their data, identity and reputation, which I believe are amongst the most valuable assets.

任何關注的人都清楚，這些威脅正在創造一個動態的威脅格局，使全球消費者的隱私、身分和金融資產面臨的真正威脅比以往任何時候都更有價值。對於更謹慎的個人來說，我們很難控制他們的個人資料所在的位置，並且幾乎無法了解我們的政府、公司和小型企業如何保護他們的資料、身分和聲譽，我認為這些是最有價值的資產。

I strongly believe that it is not a question of if your personal data will be compromised, if it hasn't occurred already yet, but when. And that is why the team at Gen has made protecting you, your data, and your digital identity, our lives to work. It is a never ending mission that we deliver to constant innovation.

我堅信，問題不是您的個人資料是否會被洩露（如果尚未發生的話），而是何時會被洩露。這就是為什麼 Gen 團隊將保護您、您的資料和您的數位身分作為我們的工作重點。不斷創新是我們永無止境的使命。

Today, we already have the most comprehensive product portfolio that meets the consumer needs for security, identity, privacy, and reputation. Our flagship cyber safety membership offerings, Norton 360, Avast One and Avira Prime continued to gain traction and regularly receive industry recognition and awards for the way we protects against the merits of cyber threats.

如今，我們已經擁有最全面的產品組合，可以滿足消費者對安全、身分、隱私和聲譽的需求。我們的旗艦網路安全會員產品 Norton 360、Avast One 和 Avira Prime 繼續受到關注，並因我們防範網路威脅的方式而定期獲得行業認可和獎項。

We don't just stop at delivering to consumers industry-leading technology. We know that providing our customers with best-in-class services sets us apart from our competitors. Solution like LifeLock and ReputationDefender delivered personal live service to help protect, and restore your identity and reputation in the event you become a victim.

我們不僅僅停留在向消費者提供領先業界的技術。我們知道，為客戶提供一流的服務使我們有別於競爭對手。LifeLock 和 ReputationDefender 等解決方案提供個人即時服務，幫助保護並在您成為受害者時恢復您的身分和聲譽。

By focusing on the customer journeys with us, both products have achieved top ratings with LifeLock recognizes the best identify theft service in the marketplace and ReputationDefender with a near perfect reading for reputation management.

透過關注我們的客戶旅程，這兩款產品都獲得了最高評級，LifeLock 被認為是市場上最好的身份盜竊服務，而 ReputationDefender 則獲得了近乎完美的聲譽管理解讀。

As the leader of the industry, we are constantly investing in innovation to stay ahead of potential threats and provide our customers who is the best possible cyber safety protection. Yesterday, we launched Norton Ultra VPN, which offers more comprehensive online protection with three different plans catering to individuals, couples, and families.

作為業界的領導者，我們不斷投資創新，以領先潛在威脅，為我們的客戶提供最佳的網路安全保護。昨天，我們推出了 Norton Ultra VPN，它提供更全面的線上保護，並提供三種不同的計劃，適合個人、夫妻和家庭。

Norton Ultra VPN provides the best online privacy, dark web monitoring, VPN protocol support and worldwide content access. In addition, it offers protection against scams, viruses, malware, and ransomware, as well as a password manager and parental control.

Norton Ultra VPN 提供最佳的線上隱私、暗網監控、VPN 協定支援和全球內容存取。此外，它還提供針對詐騙、病毒、惡意軟體和勒索軟體的保護，以及密碼管理器和家長控制。

We believe it is the best and the next generation of VPN solution offering a modern and personalized approach to cyber safety and adds another entry door into total comprehensive cyber safety.

我們相信它是最好的下一代 VPN 解決方案，提供現代和個人化的網路安全方法，並為全面全面的網路安全增加了另一個入口。

We're so excited to bring Norton Ultra VPN to consumers. Not only is this is a great product that meets the customer needs, but it also represents the promise of all the hard integration work we put into bringing two companies technology together under a new single common architecture.

我們非常高興能夠將 Norton Ultra VPN 帶給消費者。這不僅是一款滿足客戶需求的出色產品，而且還代表了我們為將兩家公司的技術整合到一個新的單一通用架構下而付出的所有艱苦整合工作的承諾。

Norton Ultra VPN is built on the new Gen stack, which help us not only with the innovation and the future we delivered, but also with the speed with which we were able to bring it to market. And in the future, as we take those capabilities and combine them with our ever expanding AI tools, we currently to see what we can deliver in terms of customer experience and ease of use.

Norton Ultra VPN 基於新一代堆疊構建，這不僅幫助我們實現創新和交付未來，而且還幫助我們加快將其推向市場的速度。未來，當我們利用這些功能並將其與我們不斷擴展的人工智慧工具相結合時，我們目前正在看看我們可以在客戶體驗和易用性方面提供什麼。

Over time that will result in improved customer loyalty and greater engagement leading to more value add cross-sell and upsells.

隨著時間的推移，這將提高客戶忠誠度和更大的參與度，從而帶來更多的增值交叉銷售和追加銷售。

The last one -- the last point I want to touch on today, is that most everyone has heard about cybercrimes and cybersecurity, but most people are not fully aware of the very real risk that they are exposed to and often not adequately protected from.

最後一點——我今天想談的最後一點是，大多數人都聽說過網路犯罪和網路安全，但大多數人並沒有完全意識到他們面臨的真正風險，而且往往沒有得到充分的保護。

At Gen, we are hard at work every day, communicating, educating, and earning the trust of consumers around the world. So we have a host of industry leading brands that enables us to serve the needs of hundreds of millions of diverse customers across our over 150 countries.

在 Gen，我們每天都在努力工作，溝通、教育並贏得世界各地消費者的信任。因此，我們擁有眾多行業領先品牌，使我們能夠滿足 150 多個國家數億不同客戶的需求。

We feel it is also our responsibility to constantly educate and inform people about cyber risk to the impact through initiatives such as our recent scam artists campaign.

我們認為，我們也有責任透過我們最近的詐騙藝術家活動等舉措，不斷教育和告知人們網路風險的影響。

This campaign uses art and psychology to demonstrate the emotional impact of cybercrimes and helps people take the right steps to proactively protect themselves online. This quarter, we also launched our personal data exposure scam by LifeLock, which is a comprehensive scam of millions of data points online combining with our privacy monitoring and dark web algorithms. By simply entering an e-mail address individuals can obtain a free report card detailing all their supposedly private information that may be actually publicly available.

該活動利用藝術和心理學來展示網路犯罪的情感影響，並幫助人們採取正確的步驟在網路上主動保護自己。本季度，我們還推出了 LifeLock 的個人資料外洩騙局，這是一個結合我們的隱私監控和暗網演算法的線上數百萬資料點的綜合騙局。只需輸入電子郵件地址，個人即可獲得免費的成績單，其中詳細列出了實際上可能公開的所有所謂私人資訊。

These tools are free to everyone and give consumer visibility to the digital footprint so they can better protect themselves. For this type of cyber safety awareness initiatives are beginning to pay off as we grew cyber safety bookings and revenue by 4% in Q1.

這些工具對所有人免費，讓消費者能夠了解數位足跡，以便他們更好地保護自己。隨著我們第一季的網路安全預訂量和收入成長了 4%，此類網路安全意識措施已開始取得成效。

We had strong momentum in the identity and privacy business lines with bookings up 6%, supported by double-digit new customer acquisition in that segment and accelerating privacy cross-sell growth.

我們在身分認同和隱私業務領域表現強勁，預訂量成長了 6%，這得益於該領域兩位數的新客戶獲取以及加速的隱私交叉銷售成長。

This success reflects the increasing consumer awareness of identity risk from recently reported breaches. Also, the identity market remains mostly US-based today, we continue to make steady traction in our efforts to expand identity protection globally, introducing Norton 360 Advance to eight markets in Europe, providing customer additional identity protection services such as dark web monitoring, social media monitoring, stolen wallet assistant and ID restoration.

這一成功反映出消費者對最近報告的違規行為所帶來的身份風險的認識不斷增強。此外，目前身份市場仍主要集中在美國，我們繼續穩步推進在全球範圍內擴展身份保護的工作，將Norton 360 Advance 引入歐洲的八個市場，為客戶提供額外的身份保護服務，例如暗網監控、社群媒體媒體監控、被盜錢包助理和身分恢復。

Now despite the importance of comprehensive cyber safety, most consumer mistakenly believe it won't happen to them or still believe that they digitalized our safe basically choosing to self-insured. And two third of cyber safety customers have on the basic security or even just device security. But in today's user centric, cloud-based digital world, information and identity risk transcend personal devices. We believe that comprehensive cyber safety is paramount and yet still massively underpenetrated.

現在，儘管全面的網路安全很重要，但大多數消費者錯誤地認為這種情況不會發生在他們身上，或者仍然相信他們將我們的保險箱數位化，基本上選擇了自我保險。三分之二的網路安全客戶擁有基本安全甚至只是設備安全。但在當今以用戶為中心、基於雲端的數位世界中，資訊和身分風險超越了個人設備。我們認為，全面的網路安全至關重要，但其滲透率仍然嚴重不足。

And with our technology, portfolio, focus on innovation, trusted brands, and channel expansion, we are well positioned to drive its adoption. This is on never ending mission. So in summary, we are pleased with our Q1 results and promising start to fiscal 2025. We are confident that our customer centricity, innovation, and disciplined execution will enable us to deliver on our goals for not only this year, but also on our plan to accelerate long-term profitable revenue growth to further increase shareholder value.

憑藉我們的技術、產品組合、對創新的關注、值得信賴的品牌和管道擴張，我們有能力推動其採用。這是永無止境的使命。總而言之，我們對第一季的業績感到滿意，並且對 2025 財年的開局充滿希望。我們相信，以客戶為中心、創新和嚴格的執行將使我們不僅能夠實現今年的目標，而且能夠實現加速長期獲利收入成長的計劃，以進一步提高股東價值。

And with that, let me pass it onto Natalie to review our performance in details.

接下來，讓我將其轉交給娜塔莉，詳細回顧我們的表現。

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our fiscal Q1 2025 results, followed by our outlook for Q2 and full year fiscal year 2025.

謝謝你，文森特，大家好。在今天的電話會議中，我將介紹我們 2025 年第一季財報的業績，然後是我們對第二季和 2025 財年全年的展望。

I will focus on non-GAAP financials and year over year growth rates unless otherwise stated. Before I begin, I want to highlight that as disclosed in today's presentation and our recent Form 8-K, we made a revision to our historical practice of when we recognize revenue for certain customers changing from successful build to date to renewal date.

除非另有說明，我將專注於非公認會計準則財務數據和同比增長率。在開始之前，我想強調一下，正如今天的簡報和我們最近的 8-K 表格中所揭露的，我們對某些客戶確認收入從成功建置日期到續約日期的歷史慣例進行了修訂。

The impact of the revision is immaterial further For comparative purposes, we have corrected for this in prior periods reported. Please refer to the supplemental information section of today's slide presentation available on our IR website as well as our Q1 Form 10-Q for more details.

出於比較目的，修訂的影響並不重要，我們已在先前報告的期間對此進行了糾正。請參閱我們的 IR 網站上今天幻燈片演示的補充資訊部分以及我們的 Q1 表格 10-Q 以了解更多詳細資訊。

Now turning to Q1 results. Q1 was another quarter of solid execution with financial results at the midpoint of our guidance and reflects our 20 consecutive quarter of growth. Q1 bookings were $913 million, up 3% in USD and 4% in constant currency.

現在轉向第一季的結果。第一季是另一個執行穩健的季度，財務表現處於我們指導的中點，反映了我們連續 20 個季度的成長。第一季預訂量為 9.13 億美元，以美元計算成長 3%，以固定匯率計算成長 4%。

Cyber safety bookings, which exclude our legacy business lines also grew 4% year-over-year in constant currency. Total Q1 revenue was $965 million, up 2% in USD and up 3% in constant currency. Cyber safety revenue grew 4% year-over-year in constant currency, driven by our privacy and identity business lines, as well as continued cross-sell penetration into the Norton base.

網路安全預訂（不包括我們的傳統業務線）以固定匯率計算也較去年同期成長 4%。第一季總營收為 9.65 億美元，以美元計算成長 2%，以固定匯率計算成長 3%。在我們的隱私和身分業務線以及對諾頓基地的持續交叉銷售滲透的推動下，網路安全收入按固定匯率計算年增 4%。

In the US, we also grew 4% with expanding demand for privacy and identity protection services, attracting new customers through direct and partner channels and scaling cross-sells with our existing customers.

在美國，隨著對隱私和身分保護服務的需求不斷擴大、透過直接和合作夥伴管道吸引新客戶以及擴大與現有客戶的交叉銷售，我們的收入也增加了 4%。

We also continued to further penetrate international markets with varying degrees of market maturity as we continue to seed new acquisitions and expand the reach of our cyber safety services. We will continue to execute on all levers at our disposal to drive broad-based growth in a profitable manner.

隨著我們繼續進行新的收購並擴大我們的網路安全服務的範圍，我們也繼續進一步滲透具有不同市場成熟度的國際市場。我們將繼續利用我們可以利用的所有槓桿，以有利可圖的方式推動廣泛的成長。

Direct revenue was $850 million, up 3% in constant currency, supported by improvements across our key performance metrics of direct customers, average revenue per consumer, our retention rate. Let me share some specifics.

直接收入為 8.5 億美元，以固定匯率計算成長 3%，這得益於我們的直接客戶關鍵績效指標、每位消費者的平均收入和保留率的改善。讓我分享一些具體細節。

A key ingredient to our growth strategy is driving net new customers. And in Q1, we expanded our customer base for the fourth consecutive quarter, increasing to $39.3 million, up $192,000 sequentially and up $1.1 million year over year. We continue to invest in a broad range of marketing channels to reach new audiences, generate more traffic to our sites while optimizing conversion.

我們成長策略的關鍵因素是吸引新客戶。在第一季度，我們的客戶群連續第四個季度擴大，增至 3,930 萬美元，比上一季增加 192,000 美元，年增 110 萬美元。我們繼續投資廣泛的行銷管道，以吸引新的受眾，為我們的網站帶來更多流量，同時優化轉換。

We are acquiring new customers with healthy ROIs as we further penetrate international markets with our mobile offerings. Leveraging our brand trust and awareness, combined with our highly rated award winning product portfolio, we will continue to push through with our diverse set of acquisition channels to grow our customer base.

隨著我們透過行動產品進一步滲透國際市場，我們正在以可觀的投資報酬率獲取新客戶。憑藉我們的品牌信任和知名度，結合我們備受好評的屢獲殊榮的產品組合，我們將繼續推動多元化的收購管道，以擴大我們的客戶群。

On monetization, our monthly direct ARPU was USD7.23, up $0.01 sequentially and down $0.01 compared to last year's result. However, please note this result absorbs $0.04 of negative FX headwind year over year and $0.02 sequentially.

在貨幣化方面，我們的每月直接 ARPU 為 7.23 美元，比上一季增長 0.01 美元，與去年相比下降 0.01 美元。然而，請注意，這一結果同比吸收了 0.04 美元的負面外匯逆風，環比吸收了 0.02 美元。

Operationally, ARPU remains stable to slightly up across our customer cohorts by brand and market. And as we grow our customer base, we have demonstrated the ability to further monetize through cross-sells and upsells. With the Norton base cross-sell penetration has grown from 15% to 20% over the past year.

從營運角度來看，我們的客戶群（按品牌和市場劃分）的 ARPU 保持穩定，略有上升。隨著我們客戶群的擴大，我們已經展示了透過交叉銷售和追加銷售進一步獲利的能力。憑藉諾頓基地，去年交叉銷售滲透率從 15% 成長到 20%。

We have leveraged at best practices to offer the most suitable complementary products during the right moments of truth that will further protect customers and our growing digital needs.

我們利用最佳實踐在關鍵時刻提供最合適的補充產品，這將進一步保護客戶和我們不斷增長的數位需求。

We also continue to refine our upsell playbook to guide our customers toward higher tiered memberships with more comprehensive protection, an exciting opportunity for growth as we look to the next few years. The expanded value proposition provided to our customers is also reflected in the retention increases to date.

我們也持續完善我們的追加銷售策略，引導我們的客戶獲得更高等級的會員資格和更全面的保護，這是我們展望未來幾年的令人興奮的成長機會。為我們的客戶提供的擴展價值主張也反映在迄今為止的保留率增加。

In Q1, our direct retention rate was nearly 78%, improving year-over-year and progressing towards our goal to 80%. As we move through the Gen stack simplification, and we see more opportunities to drive higher customer loyalty and increased lifetime value, leveraging better targeting capabilities to create more personalized customer experiences through their journey, in turn, activating the growth flywheel as we've previously shared.

第一季度，我們的直接保留率接近 78%，年比有所提高，並向 80% 的目標邁進。隨著我們進行Gen stack簡化，我們看到了更多機會來提高客戶忠誠度和增加終身價值，利用更好的定位能力在他們的旅程中創造更個性化的客戶體驗，反過來，激活增長飛輪，就像我們之前所做的那樣共享。

Turning to our partner business. Partner revenue was $101 million in Q1, up 4% year-over-year as reported and up 6% in constant currency. Our employee benefits channel pipeline is robust, as organizations increasingly recognize the importance of protecting their workers from the identity and cyber risks they face.

轉向我們的合作夥伴業務。第一季合作夥伴營收為 1.01 億美元，年增 4%，以固定匯率計算成長 6%。隨著組織越來越認識到保護員工免受所面臨的身份和網路風險的重要性，我們的員工福利管道管道非常強大。

We continue to strengthen strategic partnerships with telcos, financial services, and insurance providers to expand our identity offerings. And we are also driving higher penetration of our private browsers and search partnerships. Scaling our partner business to $0.5 billion in annual revenue as a key component to achieving our overall growth plan. And we are confident in the progress we're making.

我們持續加強與電信公司、金融服務和保險提供者的策略合作夥伴關係，以擴展我們的身分識別產品。我們也正在推動私人瀏覽器和搜尋合作夥伴的更高滲透率。將我們的合作夥伴業務規模擴大到年收入 5 億美元，作為實現我們整體成長計畫的關鍵組成部分。我們對我們正在取得的進展充滿信心。

Rounding out our revenue, our legacy business lines contributed $14 million this quarter, down from $17 million the prior year. As a reminder, we expect our legacy revenues to continue declining double digits year-over-year and represent less than 2% of our revenue.

除了我們的收入外，我們的傳統業務線本季貢獻了 1,400 萬美元，低於上一年的 1,700 萬美元。提醒一下，我們預計我們的傳統收入將繼續同比下降兩位數，占我們收入的比例不到 2%。

Turning to profitability. Q1 operating income was $564 million, up 4% year-over-year and up 5% in constant currency, translating to an operating margin of 58.4%. We continue to make disciplined investments in targeted growth opportunities to reach new customers through full funnel marketing efforts and expand our international presence.

轉向盈利能力。第一季營業收入為 5.64 億美元，年增 4%，以固定匯率計算成長 5%，營業利益率為 58.4%。我們繼續對有針對性的成長機會進行嚴格的投資，透過全漏斗行銷努力吸引新客戶並擴大我們的國際影響力。

We're also solidifying our technology capabilities, including the new gen stack simplification to quickly adapt to ever-changing cyber threats and drive innovation through new offerings such as Norton Ultra VPN to add to our comprehensive cyber safety product portfolio. Within our core, we will continue to drive efficiencies and productivity that can be reinvested into additional growth levers.

我們還鞏固了我們的技術能力，包括新一代堆疊簡化，以快速適應不斷變化的網路威脅，並透過 Norton Ultra VPN 等新產品推動創新，以添加到我們全面的網路安全產品組合中。在我們的核心範圍內，我們將繼續提高效率和生產力，並將其再投資到其他成長槓桿上。

Q1 net income was $335 million, up 11% year-over-year. Diluted EPS was $0.53 for the quarter, up 13% year-over-year and up 15% in constant currency. Interest expense related to our debt was $146 million. Our non-GAAP tax rate remained steady at 22% and our ending share count was $627 million, down $16 million year-over-year, reflecting the impact of share repurchases.

第一季淨利為 3.35 億美元，年增 11%。本季稀釋後每股收益為 0.53 美元，年增 13%，以固定匯率計算成長 15%。與我們的債務相關的利息支出為 1.46 億美元。我們的非 GAAP 稅率穩定在 22%，期末股票數量為 6.27 億美元，年減 1,600 萬美元，反映了股票回購的影響。

Turning to our balance sheet and cash flow. Q1 ending cash balance was $644 million. We are supported by over $2 billion of total liquidity consisting of our ending Q1 cash balance and a $1.5 billion revolver.

轉向我們的資產負債表和現金流。第一季末現金餘額為 6.44 億美元。我們得到了超過 20 億美元的總流動性的支持，其中包括第一季末的現金餘額和 15 億美元的左輪手槍。

Q1 operating cash flow was $264 million and free cash flow was $262 million, which included approximately $187 million of cash interest payments this quarter.

第一季營運現金流為 2.64 億美元，自由現金流為 2.62 億美元，其中包括本季約 1.87 億美元的現金利息支付。

As a reminder, early on in Q1, we successfully repriced our existing Term Loan B, removing the credit spread adjustment and lowering the credit spread associated with it from 200 basis points or so for 275 basis points. And as we see every year, we expect Q2 to be the lowest quarter of the year for operating cash flow, given the concentration of tax payments that are due.

提醒一下，在第一季度初期，我們成功地對現有的定期貸款B 進行了重新定價，取消了信用利差調整，並將與之相關的信用利差從200 個基點左右降低到275 個基點。正如我們每年所看到的那樣，鑑於應繳稅款集中，我們預計第二季將是全年營運現金流最低的季度。

Turning to capital allocation, we remain balanced with our capital deployment on our committed to returning a 100% of excess free cash flow to shareholders. We voluntarily repaid $30 million of our Term Loan B as well as $58 million per our maturity schedule and are now 3.5 times net levered.

在資本配置方面，我們維持資本配置平衡，致力於將超額自由現金流100%回饋給股東。我們自願償還了 3000 萬美元的定期貸款 B 以及每個到期時間表的 5800 萬美元，現在的淨槓桿率為 3.5 倍。

We also deployed $272 million for share repurchases this quarter, the equivalent of 11 million shares as part of the expanded $3 billion buyback program approved by the Board in May of 2024.

本季我們也部署了 2.72 億美元用於股票回購，相當於 1,100 萬股股票，這是董事會於 2024 年 5 月批准的擴大的 30 億美元回購計畫的一部分。

Since the start of fiscal year '23, we have remained committed to a balanced capital allocation strategy, paying down $2 billion worth of debt and deploying a total of $1.6 billion of share repurchases over that time period.

自 23 財年開始以來，我們始終致力於平衡的資本配置策略，在此期間償還了價值 20 億美元的債務，並部署了總計 16 億美元的股票回購。

We paid $82 million to shareholders in the form of our regular quarterly dividend of $0.125 per common share. For Q2 fiscal 2025, the Board of Directors approved a regular quarterly cash dividend of $0.125 per common share to be paid on September 11, 2024, for all shareholders of record as of the close of business on August 19, 2024.

我們以每股普通股 0.125 美元的定期季度股息的形式向股東支付了 8,200 萬美元。對於 2025 財年第二季度，董事會批准於 2024 年 9 月 11 日向截至 2024 年 8 月 19 日營業結束時在冊的所有股東支付每股普通股 0.125 美元的定期季度現金股息。

With our strong cash flow generation, we will continue to balance debt paydown and opportunistic share buyback deployment to help achieve our goals of delivering EPS growth of 12% to 15% and driving net leverage below 3 times EBITDA by fiscal year 2027.

憑藉我們強勁的現金流生成能力，我們將繼續平衡債務償還和機會性股票回購部署，以幫助實現我們的目標，即到2027 財年實現每股收益增長12% 至15%，並將淨槓桿率降至EBITDA 3 倍以下。

Now turning to our Q2 and fiscal '25 outlook. For Q2, we expect non-GAAP revenue in the range of $965 million to $975 million, translating to 3% to 4% growth in cyber safety. And Q2 non-GAAP EPS to be in the range of $0.53 to $0.55, up 13% to 17%.

現在轉向我們的第二季和 25 財年展望。對於第二季度，我們預計非 GAAP 收入將在 9.65 億美元至 9.75 億美元之間，這意味著網路安全業務將成長 3% 至 4%。第二季非 GAAP 每股盈餘將在 0.53 美元至 0.55 美元之間，成長 13% 至 17%。

First fiscal year 2025, we are reaffirming our prior guidance. We expect full year revenue in the range of $3.89 billion to $3.93 billion, translating to 3% to 4% growth in cyber safety, expressed in constant currency, supported by expected cyber safety bookings growth of 3% to 5%.

2025 年第一個財年，我們重申先前的指引。我們預計全年營收將在 38.9 億美元至 39.3 億美元之間，以固定匯率計算，網路安全業務將成長 3% 至 4%，網路安全預訂成長預計將成長 3% 至 5%。

We expect non-GAAP EPS to be in the range of $2.17 to $2.23 per share, representing an annual increase of 12% to 15% in constant currency.

我們預計非 GAAP 每股盈餘將在 2.17 美元至 2.23 美元之間，以固定匯率計算，年增長率為 12% 至 15%。

Please note that we expect continued FX headwinds to impact our reported revenue primarily from the Japanese yen, which is depreciated over the last year.

請注意，我們預計持續的外匯逆風將影響我們報告的主要來自日圓的收入，日圓去年貶值。

In summary, our Q1 results keep us on target for our 2025 plan, and we remain well-positioned to achieve our longer-term goals. Our key performance indicators continue to trend in the right direction. We are executing our plan and our strategic growth framework provides us guide points along the journey. We look forward to reporting on our progress over the year.

總之，我們第一季的業績使我們能夠實現 2025 年計畫的目標，並且我們仍然處於實現長期目標的有利位置。我們的關鍵績效指標持續朝著正確的方向發展。我們正在執行我們的計劃，我們的策略成長框架為我們提供了整個旅程的指導點。我們期待報告一年來的進展。

As always, thank you for your time today, and I will now turn the call back to the operator to take your questions. Operator?

一如既往，感謝您今天抽出寶貴的時間，我現在將把電話轉給接線員，回答您的問題。操作員？

(Operator Instructions) Dan Bergstrom, RBC.

（操作員說明）Dan Bergstrom，RBC。

Hi, it's Dan Bergstrom for Matt Hedberg, thanks for taking our questions. It was nice to see the uptick in retention this quarter. I guess what are some initiatives there that are working well for you from a retention perspective? And then is there may be a good way to think about retention in the sense of -- was there some low-hanging fruit following the merger and incremental gains from here, maybe a little more challenging? Or is it more of a steady march to that 80% target?

大家好，我是馬特·赫德伯格的丹·伯格斯特羅姆，感謝您回答我們的問題。很高興看到本季保留率的上升。我想從保留的角度來看，有哪些舉措對您來說效果很好？那麼，是否有一種好方法來考慮留存問題——合併後是否有一些唾手可得的成果以及由此帶來的增量收益，也許更具挑戰性？或者說是朝著 80% 的目標穩定前進？

Yes. Thanks for your question. This is Vincent. And I'll take that answer. So just as a context, for those who were not here 18 months ago, when we merge with Avast, our retention rate on an aggregated basis for all the brands and the new gen co was around 75%.

是的。謝謝你的提問。這是文森特.我會接受這個答案。因此，作為一個背景，對於那些 18 個月前不在這裡的人來說，當我們與 Avast 合併時，我們所有品牌和新一代公司的整體保留率約為 75%。

And we identified about 5 points overall improvement that would drive all the way to our target 80% of retention rate for gen. A big portion of that improvement was Avast. Avast itself was around 65% retention, and we thought we could bring that business to a 75% retention rate overall.

我們確定了大約 5 個點的整體改進，這將推動我們的一代保留率達到 80% 的目標。這項改進的很大一部分是 Avast。Avast 本身的保留率約為 65%，我們認為我們可以將該業務的整體保留率提高到 75%。

And so initially, yes, we had a few low hanging fruit, as you know, or as you remember, the Norton LifeLock combined was a retention rate closer to 85%. And we had a lot of good practices around the whole customer journey, breaking it down by the different experiences as customer would have and trying to get the best optimal output for dose. We applied those expertise and practices to the entire portfolio and improve for Gen a first 2 points from 75% to 77%.

所以最初，是的，我們有一些容易實現的目標，如您所知，或者如您所記得，諾頓 LifeLock 的總保留率接近 85%。我們在整個客戶旅程中擁有許多良好的實踐，根據客戶的不同體驗進行分解，並嘗試獲得最佳的劑量輸出。我們將這些專業知識和實踐應用到整個產品組合中，並將第一代的前 2 個百分點從 75% 提高到 77%。

And then we said that the remaining will be over the next few quarters, maybe next couple of years as we really roll out the new gen stack. So this quarter, we reached 78% with actually and Avast record retention rate of 72%, but also improve a lot of retention rate to a record level as well.

然後我們說剩下的部分將在接下來的幾個季度，也許未來幾年內完成，因為我們將真正推出新一代堆疊。因此，本季度，我們達到了 78%，實際上，Avast 的保留率達到了 72%，而且還提高了許多保留率，達到了創紀錄的水平。

And I think you see here two -- the benefit of two dynamic. The first one is the rollout of the new gen stock. We see much more aligned to a suite with high engagement in app communications and that engagement and the ability to demonstrate the value to the customers has led to improved retention rate.

我想你在這裡看到了兩個——兩個動態的好處。第一個是新一代股票的推出。我們發現，在應用程式通訊中具有高參與度的套件更加一致，並且這種參與度和向客戶展示價值的能力導致了保留率的提高。

And then the second component to this is the work we've done and the work we are doing in breaking down the journey of the customers through our cyber safety cycles and really providing the right value at the right time using some of the AI and data analytics that we have built.

第二個組成部分是我們已經完成的工作和我們正在做的工作，透過我們的網路安全週期來分解客戶的旅程，並使用一些人工智慧和數據在正確的時間真正提供正確的價值我們建立的分析。

Then we're going to continue to roll those two, the new gen stock migration towards a suite approach on one side and then to build up of new features. And AI have enabled communications into that suites.

然後我們將繼續滾動這兩個，新一代庫存遷移到一側的套件方法，然後建立新功能。人工智慧已經實現了與這些套房的通訊。

That's very impressive. And then you called out cross-sell a number of times in the prepared remarks, and it is one of those five or five drivers through Investor Day. How should we think about cross-sell in the context of maybe what you've accomplished so far using, let's say, Avast as a template this time? And then what could still be done here on Norton, LifeLock from a cross-sell perspective?

這非常令人印象深刻。然後你在準備好的演講中多次提到交叉銷售，這是投資者日的五五個驅動因素之一。在您迄今為止使用 Avast 作為模板所取得的成就的背景下，我們應該如何考慮交叉銷售？那麼從交叉銷售的角度來看，諾頓、LifeLock 還可以做些什麼呢？

Yes. So as we discussed six, eight months ago now, and that is there, right, we say one of the five drivers was to increase the cross-sell and basically behind that. it basically means moving customers that have entered cyber safety from a point product to a broader comprehensive cyber safety privacy and some of the identity features have been a very strong cross-sell this quarter.

是的。正如我們在六、八個月前討論的那樣，我們說五個驅動因素之一是增加交叉銷售，基本上是在這背後。這基本上意味著將已進入網路安全領域的客戶從單點產品轉向更廣泛的綜合網路安全隱私產品，並且一些身分功能在本季度已成為非常強大的交叉銷售。

Before that, it was really about taking the products from the Avast portfolio that was more point products specifically and cross-selling into the Norton base and using their practice of cross-selling, if you want, again, at the right time and using as much as we can, data scientists to deliver the right message at the right time. I think we've seen a trend of moving more and more towards that either total comprehensive cyber safety or towards more that privacy identity angle -- and we'll see -- you'll see us continue to develop that.

在此之前，實際上是將 Avast 產品組合中的產品（更具體的產品）交叉銷售到諾頓基地，並使用他們的交叉銷售實踐，如果您願意的話，再次在正確的時間並使用作為數據科學家盡我們所能在正確的時間傳遞正確的訊息。我認為我們已經看到了越來越多地轉向全面的網路安全或更多地轉向隱私身份角度的趨勢——我們會看到——你會看到我們繼續發展這一點。

We have more room into Norton where we've made progress, but it will be a three-year road map, as you know. And then we still have a lot of room and what you did mention, which is the upsell, which is the migration towards the overall suite.

我們在諾頓方面有更多的空間，我們已經取得了進展，但這將是一個三年的路線圖，如你所知。然後我們還有很大的空間，正如你所提到的，這是追加銷售，這是向整體套房的遷移。

Today, we're slightly above 40% in the total portfolio. And I think we have an opportunity to go to where we had brought the Northern LifeLock portfolio, which was 60%. So both cross-sell and upsell have made progress. Identity and privacy where essentially the focus and cross-sell plus upsell is the big opportunity moving forward.

今天，我們在總投資組合中的佔比略高於 40%。我認為我們有機會達到我們帶來 Northern LifeLock 產品組合的水平，即 60%。因此，交叉銷售和追加銷售都取得了進展。身分和隱私本質上是焦點，交叉銷售加追加銷售是未來的巨大機會。

Thank you.

謝謝。

Peter Levine, Evercore.

彼得‧萊文，Evercore。

Peter, hey.

彼得，嘿。

Great. Thanks for taking my questions. Natalie, just the first one for you is as you think about the guidance for the remainder year what assumptions are baked into that? And then how do you think about the health of the consumer? Any color that you can give us around kind of what you're seeing from your pipeline in terms of just the overall health of the consumer into fiscal '25 versus where you were, call it, 6 to 12 months last year.

偉大的。感謝您回答我的問題。娜塔莉，您的第一個問題是，當您考慮剩餘年份的指導時，其中包含哪些假設？那麼您如何看待消費者的健康呢？您可以向我們提供有關您從管道中看到的任何顏色的信息，即 25 財年消費者的整體健康狀況與去年 6 至 12 個月的情況相比。

Yeah, thanks for the question. So the guide is very much in line with the plans that we've articulated for you guys. It's -- the five for five is the structural growth framework and not that every one of those levers hit the same order of magnitude the same quarters and the same years.

是的，謝謝你的提問。因此，該指南非常符合我們為你們所製定的計劃。五對五是結構性成長框架，並不是所有這些槓桿在同一季度和同一年份都達到相同的數量級。

But that is our strategic growth framework, and we've got the business aligned to that. In terms of, yes, the teams focused on gross acquisition. Very, very important to get the health of the top of the funnel. We've spent a lot of time and focus on figuring out all the different cohorts that we've got in our customer base and how we retain them at the highest rates possible.

但這是我們的策略成長框架，我們的業務也與此一致。是的，團隊專注於總收購量。對於保持漏斗頂部的健康非常非常重要。我們花了大量時間並專注於弄清楚我們的客戶群中擁有的所有不同群體以及我們如何以盡可能高的比率留住他們。

And then ARPU, right, we've got to make sure that we continuously stay focused on having the most robust product roadmap that can fuel our growth opportunities in both cross-sell as well as upsell. And again, continuously communicate with our customers that we have the most relevant, most comprehensive cyber safety protection in the market.

然後是 ARPU，對吧，我們必須確保我們持續專注於擁有最強大的產品路線圖，以推動我們在交叉銷售和追加銷售方面的成長機會。再次，不斷與我們的客戶溝通，我們擁有市場上最相關、最全面的網路安全保護。

And so all of those things coming together as we navigate through the year, is what helps us shore up our not only the Q2 guide, but our reiteration of the full year guide. And then in terms of the health of the consumer, look, there's been a lot of movement and a lot of things in the news in the last couple of days. But what I can tell you is what I can see within our business.

因此，在我們度過這一年的過程中，所有這些事情匯集在一起，不僅幫助我們支撐我們的第二季指南，而且幫助我們重申全年指南。然後就消費者的健康而言，過去幾天發生了很多變化，新聞中也發生了很多事情。但我可以告訴你的是我在我們的業務中看到的情況。

And so we are growing customers both from a gross add perspective, we've just seen our highest Q1 that we've seen in four years from a cancellation in perspective, we've seen the lowest number of cancels, we've seen in the last three years. So whether that's the health of the customer or that's the awareness of the ever increasing cyber safety threats that we've got, combined with our trusted brands.

因此，從總增加的角度來看，我們正在增加客戶，從取消的角度來看，我們剛剛看到了四年來最高的第一季度，從取消的角度來看，我們看到了最低的取消數量，這是我們在過去三年。因此，無論是客戶的健康，還是我們對不斷增加的網路安全威脅的認識，以及我們值得信賴的品牌。

From a customer count perspective, we see health and we see growth. And then combine that with the other two legs of the stool, as I speak about it in terms of what is happening in ARPU.

從客戶數量的角度來看，我們看到了健康，我們看到了成長。然後將其與凳子的另外兩條腿結合起來，正如我從 ARPU 中發生的情況談到的那樣。

Affects aside, we are growing ARPU consistently quarter-over-quarter, and we have seen increases in the last year across our brands in retention rate. And so from the measures of our customer in those three key performance indicators, I see a lot of help in our customer base.

撇開影響不談，我們的 ARPU 逐季度持續成長，去年我們的品牌留任率有所提高。因此，從我們客戶對這三個關鍵績效指標的衡量來看，我看到我們的客戶群提供了許多幫助。

Thank you for the color there. And if I could jump to the product side. I think last quarter, we talked and we touched the least on the ask. I think it was asked on silver the membership offering, and you talked about the newer Gen stack initiative. Can you maybe just give us an update on how that's trending?

謝謝你那裡的顏色。如果我可以跳到產品方面。我認為上個季度，我們進行了交談，但我們對要求的觸及最少。我認為有人詢問了白銀會員服務，您談到了較新的 Gen stack 計劃。能為我們介紹一下最新的趨勢嗎？

Yeah. So on the rollout of the new Gen stock, we started at the end of the fiscal year with just a couple of small countries in the Asia region to test. We had very good positive results since then. We've expanded to a few more countries. We rollout our first new cohorts because we're doing by customer cohort in the US.

是的。因此，在推出新的 Gen 庫存時，我們從本財年末開始僅在亞洲地區的幾個小國進行測試。從那時起，我們取得了非常好的正面成果。我們已擴展到更多國家。我們推出了第一批新的隊列，因為我們是根據美國的客戶隊列進行的。

We would be very cautious monitoring the first, -- the NPS after first 30 days rollout, measuring the engagement, comparing that to prior and we said it will take the full year to rollout the new stack and I think we're on track to that and we're not changing that time line. We are pleased by what we see so for. There is up and down, obviously, we will add new adjustments and as we get customer feedback, but overall, pretty positive.

我們會非常謹慎地監控第一個，即前 30 天推出後的 NPS，衡量參與度，與之前進行比較，我們說需要一整年的時間才能推出新堆棧，我認為我們正在走上正軌我們不會改變這個時間線。我們對所看到的結果感到高興。顯然，有上有下，我們會在收到客戶回饋後添加新的調整，但總的來說，相當積極。

Great. Yeah, thanks for taking my questions.

偉大的。是的，謝謝你回答我的問題。

Tomer Zilberman, Bank of America.

托默·齊伯曼，美國銀行。

Hey guys. Maybe just two quick questions for me. So this quarter, your sequential direct customer adds came in pretty strong. And you also talked about cross-sell penetration now nearing the 20%. With your guidance or excuse me, with your performance falling in line with your guidance, my question is how did the difference between existing customers and new customers play in for your expectations or versus your expectations three months ago is it in line? Or did you see one of the two performing better than expected?

大家好。也許對我來說只是兩個簡單的問題。因此，本季度，您的直接客戶連續增加量相當強勁。您還談到現在交叉銷售滲透率已接近 20%。在您的指導下，或者對不起，您的業績與您的指導一致，我的問題是現有客戶和新客戶之間的差異如何滿足您的期望或與三個月前的期望相比是否符合？或者您看到兩者之一的表現比預期更好？

Yeah, I would say it's a balance across the metrics, and we've got different teams aligned to different segments to that five to five strategic growth framework. In terms of how the customers performed, we are honestly working extremely hard from a disciplined fashion, to free up as much capacity for investment for growth as we can.

是的，我想說這是指標之間的平衡，我們有不同的團隊針對不同的細分市場，以實現五到五個策略成長框架。就客戶的表現而言，我們誠實地以嚴格的方式非常努力地工作，以釋放盡可能多的投資成長能力。

And so we've made a commitment and we stand behind that commitment in operation and execution to continue to invest in marketing. That marketing goes to the top of the funnel. So we are not surprised by the team the growth in customer count on a sequential basis.

因此，我們做出了承諾，並且我們在營運和執行方面恪守這項承諾，繼續投資於行銷。行銷進入漏斗的頂部。因此，我們對團隊客戶數量的持續成長並不感到驚訝。

And so from a gross adds perspective, like I said, it's the highest gross adds we've seen in several years. And then from a retention perspective and ARPU perspective, the levers cross-sell, we are just getting started quite honestly, we are very, very proud of the performance that our teams have driven in cross-sell penetration of the Norton base, moving from 15% to 20% last year.

因此，從總增加的角度來看，就像我說的，這是我們幾年來看到的最高的總增加。然後從留存率和 ARPU 的角度來看，交叉銷售的槓桿，老實說，我們才剛開始，我們對我們的團隊在諾頓基地的交叉銷售滲透方面所取得的表現感到非常非常自豪，從去年為15 %至20%。

But we are at 20%. And we feel like we have a ways to go, especially because we're not dealing or we're not selling into a stagnant customer base with a stagnant product portfolio, both are growing. And so we will continuously invest in product and technology, enhance our value proposition. We will continuously work to cut through the message with our trusted brand and services to our customers.

但我們是 20%。我們覺得我們還有很長的路要走，特別是因為我們沒有與停滯的客戶群進行交易，也沒有向停滯的產品組合進行銷售，兩者都在成長。因此，我們將持續投資於產品和技術，增強我們的價值主張。我們將繼續努力以我們值得信賴的品牌和服務向客戶傳遞訊息。

And will continue to focus on retention to make sure that the customers that we've got want to stay with us and they are getting world-class customer service and protected by a product and technology value creation that is ever increasing.

並將繼續專注於保留客戶，以確保我們所擁有的客戶願意留在我們身邊，他們能夠獲得世界一流的客戶服務，並受到不斷增加的產品和技術價值創造的保護。

Got it. Maybe the follow-up moving to ARPU and some of the FX headwind. What sort of hedging activities are you putting in place to protect against the weakening yen?

知道了。也許後續會轉向 ARPU 和一些外匯逆風。您正在採取哪些對沖活動來防範日圓貶值？

I don't hedge against the yen, from a currency rate perspective. We fixed the rate at the beginning, and that's why we report USD versus constant currency.

從匯率的角度來看，我不會對沖日圓。我們一開始就固定了匯率，這就是我們報告美元兌固定貨幣的原因。

Got it. Thank you. Sure.

知道了。謝謝。當然。

Saket Kalia, Barclays.

薩基特·卡利亞，巴克萊銀行。

Hey Saket.

嘿薩基特。

Okay, guys. Thanks for taking my questions here. Hey Vincent, het Natalie.

好吧，夥計們。感謝您在這裡提出我的問題。嘿文森特，他是娜塔莉。

Hi.

你好。

Hey, I joined late, so apologies so if some of these have been asked. But Vincent, maybe just to start with you, on just another part of the business.

嘿，我加入得很晚，所以很抱歉，如果有人問其中一些問題。但是文森特，也許只是從你開始，只是業務的另一個部分。

I think we get into the benefits enrollment season next quarter, and I know that last year there was a little bit of lumpiness there. And can you just talk a little bit about how that pipeline looks and maybe anything that you would, you think about doing differently this time versus last year?

我認為下個季度我們將進入福利登記季節，而且我知道去年的情況有些不穩定。您能否簡單談談該管道的外觀以及您認為今年與去年相比採取的不同做法的任何內容？

Hey, absolutely Saket. And no worries about joining late and the good news is recording the call. And we'll give a lot of good information on where we stand with our business overall, feel pretty good. You may have heard, or you may have already joined our partner this quarter partner business, which is 10% of our overall business, it's grew 6% constant currency.

嘿，絕對是薩凱特。不用擔心遲到，好消息是通話錄音。我們將提供很多關於我們整體業務狀況的良好信息，感覺非常好。你可能聽說過，或者你可能已經加入了我們的合作夥伴，本季合作夥伴業務占我們整體業務的10%，以固定匯率計算成長了6%。

As you know, it's made of categories, and I'm summarizing the context to give everybody context to your question. And it's about telcos selling two telcos solutions, our employee benefit strategic relationships and then retail. Both telcos and EB will continue to grow double digit within that partnership revenue.

如您所知，它由類別組成，我正在總結上下文，以便為每個人提供您問題的背景資訊。這是關於電信公司銷售兩種電信解決方案、我們的員工福利策略關係以及零售。電信公司和 EB 的合作收入將繼續實現兩位數成長。

And what you refer to is the fact that we signed a new -- a set of new accounts and then ahead of the enrollment time for employee benefit which start normally around October, October to February time zone, we may or may not close bigger deals into new accounts. So we've continued to invest into building up our overall coverage of the entire set of companies working through brokers.

你指的是這樣一個事實：我們簽署了一系列新帳戶，然後在員工福利註冊時間之前，該福利通常在十月左右開始，十月到二月時區，我們可能會或可能不會完成更大的交易存入新帳戶。因此，我們繼續投資建立對透過經紀商開展業務的整個公司的整體覆蓋範圍。

We have a very healthy funnel and I think not different than last year, we will try to, as aggressively as we can close as many deals as we can. Now obviously, when it comes to estimating which deal force into the full annual guidance, we feel we definitely have a very healthy funnel to cover the forecast for the year.

我們有一個非常健康的漏斗，我認為與去年沒有什麼不同，我們將盡力積極地完成盡可能多的交易。現在顯然，在估計完整年度指導中的交易力量時，我們認為我們肯定有一個非常健康的漏斗來涵蓋今年的預測。

Got it. That's very helpful. Natalie, maybe for my follow-up for you. Listen, the operating margin also speaks for itself. My question was just maybe on the gross margin. Last couple of quarters, it's just, I don't know, maybe like 100 basis points lower than it's been from the prior few quarters. So maybe the question is, can you talk to just any investments that are going into cost of sales? Or anything that we should continue there or anything that we should think about as we model growth, the difference between gross margin and OpEx going forward?

知道了。這非常有幫助。娜塔莉，也許是為了我對你的後續行動。聽著，營業利潤率也是不言而喻的。我的問題可能只是關於毛利率。過去幾個季度，我不知道，可能比前幾季低了 100 個基點。所以也許問題是，你能談論任何涉及銷售成本的投資嗎？或者我們應該繼續那裡的任何事情，或者我們在建模成長時應該考慮的任何事情，毛利率和營運支出之間的差異？

Yeah. so hi Saket. Thanks for the question. Yes, I think it is definitely appropriate to call out, just what high margins we operate the business from both the gross margin and the operating margin. Operating margin has improved 7 points over the last three years, up to 5 points over the last two years.

是的。嗨薩基特。謝謝你的提問。是的，我認為從毛利率和營業利潤率兩方面來說，我們經營業務的利潤率有多高絕對是合適的。營業利潤率在過去三年中提高了 7 個百分點，在過去兩年中提高了 5 個百分點。

So I think that is the reason we'll measure of how we operate, it's a disciplined approach. It is one of very, very high margin and we are committed to that. However, we also said as we navigate the business forward, although we're going to operate the core at those very high margins that we've been increasing to, we also reserve the right to invest in areas of growth that we believe are healthy and that will lead us to supporting the five to five growth strategy because everyone wants to see an accelerating rate of growth on the top line.

所以我認為這就是我們衡量我們運作方式的原因，這是一種嚴格的方法。這是非常非常高的利潤率之一，我們致力於這一點。然而，我們也表示，在我們推動業務向前發展的過程中，儘管我們將以我們一直在增加的非常高的利潤率運營核心業務，但我們也保留投資於我們認為健康增長的領域的權利這將導致我們支持五到五的成長策略，因為每個人都希望看到收入成長加快。

And so although you see 86.3% gross margin this quarter, that's flat quarter over quarter. Down year over year, yes, but I would ask that you just zoom out a bit further. Gross margin is relatively stable.

因此，儘管本季的毛利率為 86.3%，但與上一季相比持平。是的，逐年下降，但我要求您再縮小一點。毛利率相對穩定。

If you look back at '22, you look back at '23, it's incredibly stable. I would say the only part that I would say that we've seen is honestly just P&L geography of our investments. We will continue to put firepower behind profitable, healthy ROI marketing investment to drive the top of the funnel. And that's all you're seeing with the gross margin variability.

如果你回顧 22 年，再看看 23 年，你會發現它非常穩定。我想說，老實說，我們所看到的唯一部分只是我們投資的損益分佈。我們將繼續大力支持有利可圖、健康的投資報酬率行銷投資，以推動漏斗的頂部。這就是您所看到的毛利率變化。

I would say zoom out, look at the overall 86% to 87% range on gross margin and look to the operating margin health and stability that we've delivered over the last few years.

我想說的是，縮小範圍，看看總體毛利率在 86% 到 87% 的範圍內，並看看我們在過去幾年中實現的營業利潤率的健康和穩定性。

Very clear. Thanks, guys.

非常清楚。多謝你們。

Thank you.

謝謝。

Hamza Fodderwala, Morgan Stanley.

哈姆扎·福德瓦拉，摩根士丹利。

Hey this is John on for Hamza. Hey how are you.

嘿，這是哈姆札的約翰。嘿，你怎麼樣。

Good.

好的。

Thanks for taking my question and great results in very tough environment. Vincent, just for you, can you just talk about how you mentioned GenAI in prepared remarks, but can you just touch a little deeper into kind of what's driving growth there in terms of maybe brand awareness across, different geos? And just what the opportunity overall that looks like?

感謝您提出我的問題，並在非常艱難的環境中取得了出色的成果。Vincent，就您而言，您能否談談您在準備好的發言中如何提到 GenAI，但您能否更深入地探討一下推動不同地區品牌知名度增長的因素？整體而言，機會是什麼樣的？

Yeah. Definitely, we've seen -- first of all, on the upstream, we've seen definitely a very strong double-digit growth increase on data breaches and data getting into the hands of the overall hacking community. We've seen a surge of increased scams, text and other things using some of those social engineering techniques to combine data breached with other private information that may sit in the -- on the web and making the scans more and more relatable, personable -- and with that, obviously, increasing the risks for consumers.

是的。當然，我們已經看到——首先，在上游，我們確實看到資料外洩和資料落入整個駭客社群手中的情況出現了非常強勁的兩位數成長。我們已經看到越來越多的詐騙、簡訊和其他事情使用其中一些社會工程技術將洩露的資料與可能位於網路上的其他私人資訊結合起來，並使掃描變得越來越相關、有風度。 - 顯然，這增加了消費者的風險。

As you know, we've decided to use AI to combat AI, and we had launched Norton Genie to detect those scams more and more. We have now well over 1 million users or download of that Norton Genie app and emerging for the second half, we're migrating that to integrate a basic anti-scam AI-supported features into multiple product sets. So you'll see more and more shift towards using AI to detect AI-generated scam today.

如您所知，我們決定使用人工智慧來對抗人工智慧，我們推出了 Norton Genie 來檢測越來越多的此類詐騙。我們現在擁有超過 100 萬用戶或下載了 Norton Genie 應用程序，並將在下半年出現，我們正在將其遷移，以將人工智慧支援的基本反詐騙功能整合到多個產品集中。因此，今天您會看到越來越多的人轉向使用人工智慧來檢測人工智慧生成的騙局。

Got it. That's very helpful. And just my follow-up for Natalie. So net adds were obviously very strong again this quarter. Can you just talk a little bit about the contribution across different geographies and maybe any color on how you're thinking about net adds tracking throughout the year if you have any visibility? Thank you.

知道了。這非常有幫助。這只是我對娜塔莉的後續行動。因此，本季的淨增量顯然再次非常強勁。您能否簡單談談不同地區的貢獻，以及您如何看待全年淨添加追蹤（如果您有任何知名度）？謝謝。

Sure. I would say it's pretty broad-based will look at it a lot of both online as well as mobile we look at it by geography. We look at that by a -- we look at it across brands.

當然。我想說它的基礎非常廣泛，我們會在網路上和行動裝置上大量關注它，我們會根據地理位置來看待它。我們透過不同品牌來看待這一點。

And I would say when we look at the multiyear trending, we are headed in the right direction. And so I would say it's broad-based. We have called out the -- as we expand in the global expansion portion of our five for five and focus on acquisition, not only direct into -- I would say low penetration markets or underdeveloped markets as well as through our partner channels.

我想說，當我們審視多年趨勢時，我們正朝著正確的方向前進。所以我想說它有廣泛的基礎。當我們擴大五對五的全球擴張部分並專注於收購時，我們已經提出了收購，而不僅僅是直接進入低滲透市場或欠發達市場以及透過我們的合作夥伴管道。

We know that the customers that we are able to acquire come in all shapes and sizes, so to speak. And so we've got to figure out a way to balance those through our model. But what we really focus on are is the acquisition coming through with economics that we like in that point to health and sustainability and the answer, yes, no matter which pivots that you look at, whether it's geography, whether it's brand or whether it's the way that consumers engage with us.

我們知道，可以說，我們能夠獲得的客戶具有各種形狀和規模。因此，我們必須找到一種透過我們的模型來平衡這些因素的方法。但我們真正關注的是透過我們喜歡的經濟學來進行收購，在健康和永續發展方面，答案是，是的，無論你看哪個支點，無論是地理位置，無論是品牌還是消費者與我們互動的方式。

And so that's great. And then in terms of where we're going, I don't guide customer count quarter in, quarter out. But what I would really pointing to is our commitment to continue to create the capacity to invest for growth.

這太好了。然後就我們的發展方向而言，我不會指導客戶按季度計算。但我真正想指出的是，我們致力於持續創造投資促進成長的能力。

We are here to accelerate the rate of growth this business, and there's no way we can do that if we don't really focus their fair share at the top of funnel with net new acquisition. Gross adds, yes, but also net customer adds as we continue to focus on delighting our customers and therefore increasing the retention rate of our existing customers. Both are so, so critically important for our business model, and we will continue to invest in growing the top of the funnel and then servicing our customers all the way through their journey to make sure that they retain at the highest rate possible.

我們來這裡是為了加快這項業務的成長速度，如果我們不真正將他們的公平份額集中在淨新收購的漏斗頂部，我們就無法做到這一點。是的，總客戶增加了，但淨客戶也增加了，因為我們繼續專注於取悅客戶，從而提高現有客戶的保留率。兩者對我們的商業模式都非常非常重要，我們將繼續投資於發展漏斗頂部，然後在客戶的整個旅程中為他們提供服務，以確保他們以盡可能高的比率保留。

Got it. That's very helpful. Thank you very much.

知道了。這非常有幫助。非常感謝。

Thank you.

謝謝。

Thank you. There are no further questions at this time. I would now like to turn the call back to Vincent Pilette for closing remarks.

謝謝。目前沒有其他問題。現在我想將電話轉回給文森特·皮萊特（Vincent Pilette），讓其致閉幕詞。

Thank you, operator. As the leading company in consumer cyber safety, we have a bold vision to provide digital freedom for everyone. The threat landscape is more dynamic than ever, and our investments in technology, AI and product innovation are key to our success and future opportunities.

謝謝你，接線生。作為消費者網路安全領域的領先公司，我們擁有為每個人提供數位自由的大膽願景。威脅情勢比以往任何時候都更加動態，我們對科技、人工智慧和產品創新的投資是我們成功和未來機會的關鍵。

We have a compelling AI enabled product roadmap, focus on security, financial safety, personal data control and verification. Our go-to-market strategies effective, and we have a long track record of serving our customers.

我們擁有引人注目的人工智慧產品路線圖，專注於安全、財務安全、個人資料控制和驗證。我們的市場進入策略非常有效，我們在服務客戶方面有著悠久的記錄。

We are well positioned to expand the adoption of cyber safety globally with our trusted brands and omnichannel expertise. Thank you for your interest and your support.

憑藉我們值得信賴的品牌和全通路專業知識，我們有能力在全球擴大網路安全的採用。感謝您的關注與支持。

This concludes the conference call. For your participation, you may now disconnect your line.

電話會議到此結束。為了您的參與，您現在可以斷開線路。