Gen Digital Inc (GEN) 2025 Q2 法說會逐字稿

Good afternoon, everyone. Thank you for standing by. My name is Victoria, and I will be your conference operator today. This call is being recorded. (Operator Instructions).

大家下午好。謝謝你的支持。我叫維多利亞，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）。

At this time, for opening remarks, I would like to pass the call over to Jason Starr, Head of Investor Relations.

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, Victoria, and good afternoon, everyone. Welcome to Gen's second quarter fiscal year 2025 earnings call. Joining me today are Vincent Pilette, CEO; and Natalie Derse, 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.

謝謝你，維多利亞，大家下午好。歡迎參加 Gen 2025 財年第二季財報電話會議。今天加入我的是執行長文森特·皮萊特 (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 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，在這次電話會議中，除非另有說明，所有提及的財務指標均非公認會計原則，所有增長率均為同比增長率。我們的新聞稿和收益報告中包含非 GAAP 與 GAAP 指標的對賬，兩者均可在我們的投資者關係網站 Investor.gendigital.com 上取得。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, October 30, 2024.

今天的電話會議包含有關我們的業務、財務業績和營運的聲明，包括可能被視為前瞻性聲明的我們的業務和行業的影響，此類聲明涉及風險和不確定性，可能導致實際結果與我們目前的預期存在重大差異。這些陳述是基於截至今天（2024 年 10 月 30 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 statement in our press release and the risk factors in our filings with the SEC and in particular, our most recent 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，特別是我們最新的 10-K 表格和 10-Q 表格報告。

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

現在我將把電話轉給文森。

Thank you, Jason. Q2 was another solid quarter of consistently executing on our strategy meeting our commitments for profitable growth while continuing our investment to meet the long-term consumer needs of ever-expanding digital lives.

謝謝你，傑森。第二季度是我們持續執行策略的另一個堅實的季度，實現了我們對獲利成長的承諾，同時繼續進行投資，以滿足不斷擴大的數位生活的長期消費者需求。

We delivered another quarter of mid-single-digit bookings growth up 5% and our highest growth rate since the Avast acquisition and a double-digit earnings per share growth, up 16%. We also grew our direct paying customers by 400,000 in the quarter, not a record $39.7 million. Those results are a testament to the solid disciplined and consistent execution of our team.

我們的預訂量又實現了 5% 的中個位數成長，這是自收購 Avast 以來的最高成長率，每股盈餘也實現了兩位數成長，成長了 16%。本季我們的直接付費客戶數量也增加了 40 萬，而非創紀錄的 3,970 萬美元。這些結果證明了我們團隊紀律嚴明、執行力始終如一。

On top of that, it is also a clear reflection of what we have talked about for many quarters. People are being exposed to an accelerating threat environment and their awareness is growing with every new breach and scam text or e-mail. Those trends are here to stay and are being enhanced by the use or misuse of AI.

最重要的是，這也清楚地反映了我們許多季度所討論的內容。人們正面臨著日益加劇的威脅環境，隨著每一個新的漏洞和詐騙簡訊或電子郵件的出現，他們的意識也不斷增強。這些趨勢將持續存在，並因人工智慧的使用或濫用而得到加強。

As consumer awareness grows, we stand ready to empower your digital life with the most innovative and easy-to-use solutions that secure and protect your identity and your returned assets. It is easy to get desensitized to news of yet another breach, but the impact recently is truly staggering.

隨著消費者意識的增強，我們隨時準備透過最具創新性和易於使用的解決方案來增強您的數位生活，以保護您的身分和退回的資產。人們很容易對另一起違規事件變得麻木不仁，但最近的影響確實令人震驚。

In August, the US National Public data breach exposed an estimated $270 million social security numbers, practically two-third of all social security numbers ever issued leaving one out of three Americans at risk of identity attacks. The scale and the frequency of breaches, along with the sophistication and volume of phishing e-mails and scams makes everyone vulnerable.

8 月份，美國國家公共資料外洩事件洩露了估計價值2.7 億美元的社會安全號碼，幾乎佔有史以來發放的所有社會安全號碼的三分之二，使得三分之一的美國人面臨身分攻擊的風險。違規行為的規模和頻率，以及網路釣魚電子郵件和詐騙的複雜性和數量，使每個人都容易受到攻擊。

As we shared in our last report around rising election scams, even young adults who are expected to be the severest online are proving to be susceptible at higher rates. This unfortunate reality is a big part of why our team at Gen is still mission-driven. We believe that no matter how good the cyber criminals get, our goal is to give you the tools and the solutions that empower you to live your digital life without worry.

正如我們在上一份關於選舉詐騙不斷增加的報告中所分享的那樣，事實證明，即使是那些預計在網路上最嚴重的年輕人也更容易受到影響。這個不幸的現實是我們 Gen 團隊仍然以使命為導向的一個重要原因。我們相信，無論網路犯罪分子的手段有多高明，我們的目標都是為您提供工具和解決方案，使您能夠無憂無慮地過上數位生活。

Delivering digital freedom and peace of mind is no small task. So every day, we are focused on upping our game. Just about a year ago, our threat team and technology detected the growing threats of personalized scams at high volumes and quickly delivered our Genie anti-scam product. Powered by AI, Genie was the first embodiment of the future of digital freedom. Not only does it interact with you in an accessible and intuitive way, it also continually learns and adapts with every interaction.

提供數位自由和安心並非易事。因此，我們每天都專注於提高我們的遊戲水平。大約一年前，我們的威脅團隊和技術大量偵測到日益增長的個人化詐騙威脅，並迅速交付了我們的 Genie 反詐騙產品。在人工智慧的支持下，Genie 是數位自由未來的第一個體現。它不僅以易於理解和直觀的方式與您互動，而且還不斷學習和適應每次互動。

Today, we have over 1.6 million downloads and its overall efficacy is approaching 100%. Genie is a great example of how we continue to put innovative solutions in the hands of consumers but it is just the start. In the coming quarters, we plan to enhance the product and expand this anti-scam technology into our core offerings. More to come on that front.

如今，我們的下載量已超過 160 萬次，整體效率接近 100%。Genie 是我們如何繼續將創新解決方案交付給消費者的一個很好的例子，但這只是一個開始。在接下來的幾個季度中，我們計劃增強產品並將這種反詐騙技術擴展到我們的核心產品。這方面還有更多內容。

Protecting consumers from scams is one of the biggest attack vectors, but as I mentioned earlier, breaches pose an entirely different threat and are also on rise. Breaches with you, your information and you art assets at risk, and it generally happens through no fault of you own. Data you provided to your favorite stores, your health care provider, you banks and the government is being put on the dark web. And as the breaches proliferate, cyber criminals are stitching together different pieces of information to increase their ability to successfully steal your identity or target you for sophisticated and personalized scams. No one is immune. And if you don't believe me, I challenge you to go out and try our free lifelog data exposure scan, and I'm sure you will be surprised at how much of your information is out there and available.

保護消費者免受詐騙是最大的攻擊媒介之一，但正如我之前提到的，違規行為構成了完全不同的威脅，而且還在增加。您、您的資訊和您的藝術資產面臨風險，而這種情況通常不是您自己的過錯造成的。您提供給您最喜歡的商店、您的醫療保健提供者、銀行和政府的資料正在被放到暗網上。隨著違規行為的激增，網路犯罪分子正在將不同的訊息拼接在一起，以提高他們成功竊取您的身份或以您為目標進行複雜和個性化詐騙的能力。沒有人能免疫。如果您不相信我，我建議您出去嘗試我們的免費生活日誌資料暴露掃描，我相信您會驚訝於您的資訊有多少是可用的。

That constant growing threat is why we are continuously investing in and innovating around how we keep your financial assets, your personal information and your reputation safe. No one is better at helping a victim recover from identity theft than LifeLock. We invented the category, and we have a world-class restoration team that helps repair the damage. But we want to also be sure that we can stop since earlier. That's why we have alert algorithm and full spend tracking through financial monitoring features to keep you aware and safe in real time.

這種不斷增長的威脅是我們不斷投資和創新的原因，圍繞著如何保護您的金融資產、個人資訊和聲譽的安全。沒有人比 LifeLock 更能幫助受害者從身分盜竊中恢復過來。我們發明了這個類別，並且擁有世界一流的修復團隊來幫助修復損壞。但我們也想確保我們可以從早些時候開始就停止。這就是為什麼我們透過財務監控功能提供警報演算法和全面支出跟踪，讓您即時了解情況並確保安全。

We recently released credit insights to our large cloud customers as part of our strategy to address the customer needs to keep the finances safe online. This new LifeLock feature provides customers with contextual information to better understand what factors impact their credit score with actionable insights to build or improve their credit rating over time. from spend tracking to helping you better manage your subscription spending or virtual secure credit card, we see an increase in demand for trust-based services, and will continue to expand what we do for consumers in that area. So they feel empowered to manage their finances confidently, achieve financial freedom and thrive in their digital journeys.

我們最近向大型雲端客戶發布了信用見解，作為我們滿足客戶需求以確保線上財務安全的策略的一部分。這項新的 LifeLock 功能為客戶提供了上下文信息，以便更好地了解哪些因素影響他們的信用評分，並提供可操作的見解，從而隨著時間的推移建立或提高他們的信用評級。從支出追蹤到幫助您更好地管理訂閱支出或虛擬安全信用卡，我們看到對基於信任的服務的需求不斷增加，並將繼續擴大我們在該領域為消費者提供的服務。因此，他們感到自己有能力自信地管理財務、實現財務自由並在數位化之旅中蓬勃發展。

We see a long runway of growth with meaningful opportunities to expand in each pillar of our consumer cyber safety portfolio as we continue to innovate and execute. In Q2, we grew cyber savings bookings over 5%, driven by strong momentum in identity where bookings were up 8% year-over-year. We also drove double-digit growth in new customer acquisitions maintained solid momentum in upselling into our identity memberships and continued expanding our partnership network.

隨著我們不斷創新和執行，我們看到了一條漫長的成長道路，並在我們的消費者網路安全產品組合的每個支柱上都有有意義的機會進行擴展。第二季度，在身分驗證強勁勢頭的推動下，我們的網路儲蓄預訂量成長了 5% 以上，預訂量較去年同期成長 8%。我們也推動了新客戶獲取量的兩位數成長，在向我們的身分會員資格進行追加銷售方面保持了強勁的勢頭，並繼續擴大了我們的合作夥伴網絡。

With so much opportunity in front of us, we will continue to invest to serve the expanding needs of consumer, whether that be adding to our AI capabilities to better match our services to our customers and deliver more intuitive and engaging experiences from them or through innovation into new and existing products or even expanding our reach to new markets for services like identity theft protection. Even with the most comprehensive solutions in the market, we know we can't rest, so expect us to delivering innovation and more engaging experiences to our customers.

面對如此多的機會，我們將繼續投資，以滿足消費者不斷增長的需求，無論是增加我們的人工智慧功能，以更好地將我們的服務與客戶相匹配，並為他們提供更直觀、更具吸引力的體驗，還是透過創新融入新產品和現有產品，甚至將我們的業務範圍擴大到身分盜竊保護等服務的新市場。即使擁有市場上最全面的解決方案，我們也知道我們不能休息，因此期望我們為客戶提供創新和更具吸引力的體驗。

While we remain focused on the future and innovation, operating with discipline and meeting our commitments are core parts of our Gen DNA. Operating KPIs remain very healthy, supporting yet another quarter of double-digit growth in non-GAAP earnings per share, which includes many of our investments for long-term growth.

雖然我們仍然專注於未來和創新，但遵守紀律和履行我們的承諾是我們 Gen DNA 的核心部分。營運關鍵績效指標仍然非常健康，支持非公認會計原則每股收益再實現兩位數成長，其中包括我們為長期成長而進行的許多投資。

Since our Investor Day last year, where we laid out our long-term goals of accelerating growth to the mid-single digits and driving non-GAAP EPS growth of 12% to 15%. We have consistently executed and delivered on our commitments. We are pleased with our Q2 results and excited about what we can deliver in the future. As a result, we strengthened our annual guidance, and we are making steady progress towards achieving the three year financial goals we shared at our Investor Day last November.

自去年投資者日以來，我們制定了將成長加速至中個位數並推動非 GAAP 每股收益成長 12% 至 15% 的長期目標。我們始終如一地執行並兌現我們的承諾。我們對第二季的業績感到滿意，並對未來能夠提供的服務感到興奮。因此，我們加強了年度指導，並在實現去年 11 月投資者日分享的三年財務目標方面取得穩步進展。

We are passionate about our mission to empower and protect every aspect of digital life, and we're confident that our focus on the customers, our pace of innovation and our disciplined execution will enable us to achieve our goals to drive shareholder value.

我們對增強和保護數位生活各個方面的使命充滿熱情，我們相信，我們對客戶的關注、我們的創新步伐和我們嚴格的執行將使我們能夠實現推動股東價值的目標。

And with that, let me pass it on to Natalie to review our financial performance in detail.

接下來，讓我將其轉交給娜塔莉，詳細審查我們的財務表現。

Thank you, Vincent, and hello, everyone. For today's call, I will walk through our fiscal Q2 2025 results, followed by our outlook for Q3 and full year fiscal year 2025. I will focus on non-GAAP financials and year-over-year growth rates, unless otherwise stated. Q2 was another quarter of solid execution with strong financial results at or above the midpoint of our guidance and reflects our 21st consecutive quarter of growth. Q2 bookings were $964 million, up 5% in constant currency and up 4% in USD Cyber Safety bookings, which exclude our legacy business lines, also grew 5% year-over-year in constant currency, our highest growth rate since the Avast acquisition.

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 年第二財季的業績，然後是我們對第三季和 2025 財年全年的展望。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。第二季度是另一個執行穩健的季度，財務表現強勁，達到或高於我們指引的中點，反映出我們連續 21 個季度實現成長。第二季預訂量為9.64 億美元，以固定匯率計算成長5%，美元網路安全預訂量成長4%（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5%，這是自收購Avast 以來我們的最高成長率。

This quarter, there was a surge in consumer awareness, interest and demand for identity theft protection after the National Public data breach. This is when our brand awareness and vast LifeLock protection offerings really cut through and we drove stronger customer acquisition and bookings as a result, helping to shore up the higher bookings growth rate in the quarter.

本季度，在國家公共資料外洩事件發生後，消費者對身分盜竊保護的意識、興趣和需求激增。此時，我們的品牌知名度和廣泛的 LifeLock 保護產品真正發揮了作用，因此我們推動了更強勁的客戶獲取和預訂，幫助支撐了本季更高的預訂成長率。

Moving to revenue. Total Q2 revenue was $974 million, up 3% in USD and constant currency. Cyber Safety revenue grew 4% year-over-year, driven by broad-based growth across our consumer security and identity and privacy business lines. Stable growth in our security business lines reflects the success of our cross-sell program as our Norton 360 security customers continue to add more adjacent offerings, and we drive improved monetization. Identity and privacy growth was more pronounced with faster growth in our Norton 360 with LifeLock product as consumers increasingly adopt comprehensive cyber safety membership with identity solutions.

轉向收入。第二季總營收為 9.74 億美元，以美元和固定匯率計算成長 3%。在消費者安全以及身分和隱私業務線廣泛成長的推動下，網路安全收入年增 4%。我們的安全業務線的穩定成長反映了我們的交叉銷售計劃的成功，因為我們的 Norton 360 安全客戶不斷添加更多相鄰產品，並且我們推動了盈利能力的提高。隨著消費者越來越多地採用具有身分解決方案的全面網路安全會員資格，我們的 Norton 360 with LifeLock 產品成長更快，身分和隱私成長更加明顯。

Direct revenue was $860 million, up 3%, supported by improvements across our key performance metrics of direct customers, ARPU and retention. Let me share some specifics. A key ingredient to our growth strategy is driving net new customers. And in Q2, we expanded our customer base for the fifth consecutive quarter, increasing to $39.7 million up $389,000 sequentially and up over $1.1 million year-over-year.

直接收入為 8.6 億美元，成長 3%，這得益於直接客戶、ARPU 和保留率等關鍵績效指標的改善。讓我分享一些具體細節。我們成長策略的關鍵因素是吸引新客戶。在第二季度，我們的客戶群連續第五個季度擴大，增加至 3,970 萬美元，比上一季增加 389,000 美元，比去年同期增加超過 110 萬美元。

We continue to leverage our broad range of marketing channels and vast product portfolio dynamically shifting and increasing marketing investments based on demand, while optimizing our sites to drive improved traffic conversion.

我們持續利用廣泛的行銷管道和龐大的產品組合，根據需求動態轉移和增加行銷投資，同時優化我們的網站以提高流量轉換。

This quarter, our net new customer count growth was mostly driven by continued international and mobile expansion efforts, and we had the additional opportunity to further drive our identity offerings with the increased market demand. On monetization, our monthly direct ARPU was USD7.26, up $0.03 sequentially and up $0.01 compared to last year's results. Note that FX helped this metric by $0.02 sequentially but had no impact year-over-year.

本季度，我們的淨新客戶數量成長主要是由持續的國際和行動擴張努力推動的，隨著市場需求的增加，我們有額外的機會進一步推動我們的身份產品。在貨幣化方面，我們的每月直接 ARPU 為 7.26 美元，比上一季增加 0.03 美元，與去年的結果相比增加 0.01 美元。請注意，外匯對此指標的連續貢獻為 0.02 美元，但同比沒有影響。

Operationally, ARPU remains stable to slightly up across our customer cohorts by brand and by market. As we grow our customer base, we have demonstrated the ability to further monetize after their first purchase, whether through cross-selling complementary products or upselling to higher tier memberships, both avenues providing additional customer value and enhanced cyber safety protection coverage. Our efforts to better customize and personalize offerings at the right moments of truth are working. And as we add new features and expand our portfolio, we will continue to feed this flywheel. The expanded values and services provided to our customers is also reflected in the retention increases to date.

從營運角度來看，我們的客戶群（按品牌和市場）的 ARPU 保持穩定，略有上升。隨著我們的客戶群不斷擴大，我們已經展示了在客戶首次購買後進一步獲利的能力，無論是透過交叉銷售互補產品還是向上銷售給更高級別的會員，這兩種途徑都提供了額外的客戶價值並增強了網路安全保護範圍。我們在正確的關鍵時刻更好地客製化和個人化產品的努力正在發揮作用。隨著我們添加新功能並擴展我們的產品組合，我們將繼續為這個飛輪提供支援。迄今為止，為客戶提供的價值和服務的擴展也反映在保留率的增加上。

In Q2, our direct retention rate was 78%, in line with the prior quarter and improving by 1 point year-over-year, steadily progressing towards our goal of 80%. While each point of retention will get harder to achieve as we continue to drive new customer growth, our teams are focused on driving gains at the cohort and product level.

第二季度，我們的直接留存率為 78%，與上一季持平，年增 1 個百分點，穩步向 80% 的目標邁進。雖然隨著我們繼續推動新客戶成長，每個保留點都將變得更加難以實現，但我們的團隊專注於推動群體和產品層面的收益。

And as Gen stack gets rolled out to more customers, we are driving better targeting and in-product messaging with the goal to create more personalized customer experiences that will in turn drive higher customer loyalty, retention and increased lifetime value. As we look forward, we will continue to focus on keeping our already high retention rates in our Norton and LifeLock brand stable and drive increases with our mobile customers and our Avast brands.

隨著 Gen stack 向更多客戶推出，我們正在推動更好的定位和產品內訊息傳遞，目標是創造更個人化的客戶體驗，從而提高客戶忠誠度、保留率和生命週期價值。展望未來，我們將繼續致力於保持 Norton 和 LifeLock 品牌已經很高的保留率穩定，並推動我們的行動客戶和 Avast 品牌的成長。

Turning to our partner business. Partner revenue was $102 million in Q2, up 7% year-over-year as reported and up 8% in constant currency, as we grow our identity and privacy offerings. Our employee benefits channel continues to scale, helping over 10,000 companies protect their employees from identity and cyber threats.

轉向我們的合作夥伴業務。隨著我們不斷拓展身分和隱私產品，第二季合作夥伴營收為 1.02 億美元，年增 7%，以固定匯率計算成長 8%。我們的員工福利管道不斷擴大，幫助超過 10,000 家公司保護其員工免受身分和網路威脅。

As consumer awareness of identity theft grows and companies turn to offering more comprehensive benefits to their employees, our pipeline is strengthening. Our telco partnerships are also helping us scale our identity membership offerings internationally, leveraging the partner's scale and broad customer base to drive adoption in targeted expansion markets.

隨著消費者對身分盜竊的認識不斷增強，以及公司轉向為員工提供更全面的福利，我們的管道正在加強。我們的電信合作夥伴關係也幫助我們在國際上擴展我們的身分會員服務，利用合作夥伴的規模和廣泛的客戶群來推動目標擴展市場的採用。

And as consumers increasingly gravitate towards identity and privacy solutions, our private browsers have also been an accelerator for partner growth as we see strong adoption in our customer base. Across our diverse set of partner channels, we are making steady progress towards $0.5 billion in annual partner revenue over the next years. Rounding out our revenue, our legacy business lines contributed $12 million this quarter, down from $16 million in the prior year. As a reminder, we expect our legacy revenue to continue declining double digits year-over-year and represents approximately 1% of our total revenue.

隨著消費者越來越傾向於身分和隱私解決方案，我們的私人瀏覽器也成為了合作夥伴發展的加速器，因為我們看到我們的客戶群得到了大力採用。透過我們多元化的合作夥伴管道，我們將在未來幾年穩步邁向 5 億美元的合作夥伴年收入。除了我們的收入外，我們的傳統業務線本季貢獻了 1,200 萬美元，低於上一年的 1,600 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，約占我們總收入的 1%。

Turning to profitability. Q2 operating income was $567 million, up 4% year-over-year and translating to an operating margin of 58.2%. As I noted earlier, we're making focused investments to capitalize on the growth opportunities we see in the market, and that's reflected in our strong first half booking results. We continue to invest in marketing across all channels with an always-on optimization of existing funds and deployment of incremental funds to expand our customer base and accelerate growth.

轉向盈利能力。第二季營業收入為 5.67 億美元，年增 4%，營業利益率為 58.2%。正如我之前指出的，我們正在進行重點投資，以利用我們在市場上看到的成長機會，這反映在我們上半年強勁的預訂業績中。我們繼續投資全通路行銷，持續優化現有資金並部署增量資金，以擴大客戶群並加速成長。

We're also investing in R&D and our longer-term foundational technology capabilities while launching new offerings to fortify our comprehensive cyber safety product portfolio and stay ahead of emerging threats. And as we've demonstrated in prior quarters, we will continue to fund these investments through our operating leverage and by operating lean across the G&A organizations now at a record low of approximately 2% of revenue.

我們也投資於研發和長期基礎技術能力，同時推出新產品，以強化我們全面的網路安全產品組合併領先於新興威脅。正如我們在前幾個季度所展示的那樣，我們將繼續透過我們的營運槓桿和 G&A 組織的精益運營為這些投資提供資金，目前其占收入的比例創歷史新低，約為 2%。

Building on the strength of our KPIs, along with our solid execution against expectations in the first half, we will continue to invest in our business with the same disciplined approach as we focus on driving sustainable mid-single-digit growth. Q2 net income was $336 million, up 12% year-over-year. Diluted EPS was $0.54 for the quarter, up 16% year-over-year, in line with our guidance. Interest expense related to our debt was $142 million. Our non-GAAP tax rate remained steady at 22%, and our ending share count was $622 million, down $22 million year-over-year, reflecting the impact of share repurchases.

憑藉我們的 KPI 實力，以及我們上半年對預期的堅定執行力，我們將繼續以同樣嚴格的方法投資我們的業務，專注於推動可持續的中個位數成長。第二季淨利為 3.36 億美元，年增 12%。本季稀釋後每股收益為 0.54 美元，年增 16%，符合我們的指引。與我們的債務相關的利息支出為 1.42 億美元。我們的非 GAAP 稅率穩定在 22%，期末股票數量為 6.22 億美元，年減 2,200 萬美元，反映了股票回購的影響。

Turning to our balance sheet and cash flow. Q2 ending cash balance was $737 million. We are supported by over $2.2 billion of total liquidity, consisting of our ending Q2 cash balance and $1.5 billion of revolver. Q2 operating cash flow was $158 million, and free cash flow was $156 million, which included approximately $70 million of cash interest payments this quarter.

轉向我們的資產負債表和現金流。第二季末現金餘額為 7.37 億美元。我們有超過 22 億美元的總流動性支持，其中包括第二季末的現金餘額和 15 億美元的左輪手槍。第二季營運現金流為 1.58 億美元，自由現金流為 1.56 億美元，其中包括本季約 7,000 萬美元的現金利息支付。

As a reminder, Q2 is seasonally high, our highest use of cash given the concentration of tax payments that are due in the quarter. And as a result, we did not purchase any stock or pay down additional debt this quarter. Also important to note, due to the timing of our quarter end being on September 27, this year, our Q2 ending balance does not reflect our $89 million in cash interest and $58 million paid for our maturity schedule on September 30.

提醒一下，第二季是季節性高的，考慮到本季到期的稅金集中，我們現金使用量最高。因此，本季我們沒有購買任何股票或償還額外債務。同樣需要注意的是，由於我們的季度結束時間是 9 月 27 日，今年第二季期末餘額並未反映我們 8,900 萬美元的現金利息和 9 月 30 日到期的 5,800 萬美元。

As we look forward, we remain committed to our capital allocation strategy, returning 100% of excess free cash flow to shareholders, maintaining our dividend and balancing our capital allocation to both debt paydown and opportunistic share buyback.

展望未來，我們仍然致力於我們的資本配置策略，將多餘的自由現金流 100% 返還給股東，維持我們的股息，並平衡我們對債務償還和機會性股票回購的資本配置。

In the quarter, we paid $77 million to shareholders in the form of a regular quarterly dividend of $0.125 per common share. For Q3 fiscal 2025, the Board of Directors approved a quarterly cash dividend of $0.125 per common share to be paid on December 11, 2024 for all shareholders of record as of the close of business on November 18, 2024.

本季度，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 7,700 萬美元。對於 2025 財年第三季度，董事會批准於 2024 年 12 月 11 日向截至 2024 年 11 月 18 日營業結束時在冊的所有股東支付每股普通股 0.125 美元的季度現金股利。

Since the start of fiscal year 2023, we have paid down over $2 billion worth of debt and have deployed a total of $1.6 billion of share repurchases over that time period. With our strong cash flow generation, we will continue to deploy our capital to achieve the long-term objectives laid out in our Analyst Day.

自 2023 財年開始以來，我們已償還了價值超過 20 億美元的債務，並在此期間實施了總計 16 億美元的股票回購。憑藉強大的現金流產生能力，我們將繼續部署資本以實現分析師日所製定的長期目標。

Now turning to our Q3 and fiscal '25 outlook. For Q3, we expect non-GAAP revenue in the range of $980 million to $990 million, translating to approximately 4% growth in cyber safety. And Q3 non-GAAP EPS to be in the range of $0.54 to $0.56. For fiscal year 2025, we are strengthening our prior guidance range and now expect full year revenue in the range of $3.905 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 4% to 5%.

現在轉向我們的第三季和 25 財年展望。對於第三季度，我們預計非 GAAP 收入將在 9.8 億美元至 9.9 億美元之間，這意味著網路安全業務將成長約 4%。第三季非 GAAP 每股盈餘將在 0.54 美元至 0.56 美元之間。對於2025 財年，我們正在加強先前的指導範圍，目前預計全年收入將在39.05 億美元至39.3 億美元之間，這意味著網路安全增長3% 至4%（以固定貨幣表示），並得到預期網路安全預訂的支援將成長4%至5%。

We have raised the lower end of our EPS guidance and now expect non-GAAP EPS to be in the range of $2.18 to $2.23 per share representing an annual increase of 12% to 15% in constant currency and in line with the EPS growth objectives we shared last November.

我們提高了 EPS 指引的下限，目前預計非 GAAP 每股盈餘將在 2.18 美元至 2.23 美元之間，以固定匯率計算，年增長率為 12% 至 15%，符合我們的 EPS 成長目標去年11月分享的。

In summary, our Q2 results keep us on target for our 2025 plan, and we remain well positioned to achieve our long-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.

總之，我們第二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的旅程提供了指導點。

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，感謝您今天抽出時間，我現在將把電話轉回給接線員回答您的問題。操作員？

(Operator Instructions)

（操作員說明）

Andrew Nowinski, Wells Fargo.

安德魯諾溫斯基，富國銀行。

Good afternoon, and thank you for taking the questions and congrats on the strong Q2 results here.

下午好，感謝您提出問題，並祝賀第二季度的強勁業績。

Absolutely. Welcome to the call.

絕對地。歡迎來電。

Thank you very much on. I wanted to dig into the net adds this quarter, which I thought were very impressive. I mean it seems like it's almost a guarantee that every adult in the US now has their personal data on the dark web thanks to all the breaches we saw this summer, including that national public data breach. So do you think the net adds will improve, particularly in the US going forward? Because I think you said it was more influenced by the international growth this quarter.

非常感謝您。我想深入研究本季的淨增量，我認為這非常令人印象深刻。我的意思是，由於我們今年夏天看到的所有違規行為，包括國家公共資料外洩事件，這幾乎可以保證美國的每個成年人現在都在暗網上擁有自己的個人資料。那麼您認為淨新增人數會改善嗎，特別是在美國，未來會怎麼樣？因為我認為你說它更多地受到本季國際成長的影響。

So definitely, the National Data Breach helped making people more aware of the risks -- but this quarter, we grew our cohorts across all of our brands and across the continent balls, Americas and Europe. So we've seen kind of a broad base. Granted, it was a little bit more pronounced in the identity and in the US for that reason. And you're right that today, we believe that about one American out of three has enough of the personal data out there on the dark web for any criminals to stitch together a profile and do an identity test. We know ideally, -- we know that everybody should be protected and that the awareness is something that we'll expand to work on to ensure that everyone understands the risk. It's a little bit like a an insurance service, if you want, you need to have a first catastrophe to never skimp protection.

因此，國家資料外洩確實有助於讓人們更加意識到風險，但本季度，我們在所有品牌以及整個大陸、美洲和歐洲擴大了我們的團隊。所以我們已經看到了廣泛的基礎。誠然，由於這個原因，它在身份和美國更為明顯。你說得對，今天，我們相信大約三分之一的美國人在暗網上擁有足夠的個人數據，可供任何犯罪分子拼湊個人資料並進行身份測試。我們知道，理想情況下，我們知道每個人都應該受到保護，我們將擴大這種意識，以確保每個人都了解風險。這有點像保險服務，如果你願意，你需要經歷第一次災難才不會忽視保障。

Got it. And then I wanted to -- maybe just a clarification. I think last quarter, you talked about the Norton cross-sell penetration had increased to 20%. I didn't catch it this quarter if you gave that. But I was really wondering also did you see an improvement in the LifeLock attach rate or customers upgrading to that higher-end membership that includes LifeLock this quarter given all the breach activity?

知道了。然後我想──也許只是一個澄清。我想上個季度，您談到諾頓交叉銷售滲透率已增加至 20%。如果你給了這個，我這個季度就沒聽懂。但我真的想知道，考慮到所有的違規活動，您是否看到 LifeLock 附加率有所改善，或者客戶在本季度升級到包括 LifeLock 在內的高端會員資格？

Yeah. Thanks for the question. This is Natalie. So for sure, we saw increase in our cross-sell penetration. It's been a a growth driver for us and with us for several consecutive quarters. We laid that out as one of the five-to-five levers of what you have to believe for sustainable accelerated growth in the mid-single digits. And we definitely needed and wanted to show you guys and share with you guys what our starting point was and the milestone achievements that we would need to achieve mid-single-digit rate of growth over the long-term.

是的。謝謝你的提問。這是娜塔莉。因此，可以肯定的是，我們看到交叉銷售滲透率有所提高。它一直是我們的成長動力，並連續幾個季度伴隨著我們。我們將其列為您必須相信的五到五個槓桿之一，以實現中個位數的可持續加速成長。我們確實需要並且想向你們展示並與你們分享我們的起點是什麼，以及我們需要實現長期中個位數成長率所需的里程碑成就。

So it won't be a specific metric that we give you every single quarter, but absolutely consistent performance and driver of our -- not only our bookings growth, but our ARPU coming from cross-sell. And then from a LifeLock attach rate, yes, I mean you probably heard it more than a handful of times in my script because the LifeLock customers are such high value, highly retaining customers for us -- this has been a very healthy quarter for our business. We did see more LifeLock acquisition saw more up-sell into membership tiers with the LifeLock identity protection value. And we saw acquisition into higher tiered LifeLock offerings this quarter, especially even more fueled by that NPD bridge and the increased demand in the market.

因此，這不會是我們每季給您的具體指標，而是絕對一致的業績和驅動力——不僅是我們的預訂成長，還有來自交叉銷售的 ARPU。然後從LifeLock 的附加率來看，是的，我的意思是您可能在我的腳本中多次聽到這個說法，因為LifeLock 客戶對我們來說是非常有價值、高度保留的客戶- 對於我們來說，這是一個非常健康的季度商業。我們確實看到越來越多的 LifeLock 收購看到了更多具有 LifeLock 身分保護價值的會員等級的追加銷售。本季我們看到了更高層次的 LifeLock 產品的收購，尤其是在 NPD 橋樑和市場需求成長的推動下。

Got it. Thank you. Keep up the good work. Thank you.

知道了。謝謝。繼續做好工作。謝謝。

Thank you for your questions.

謝謝您的提問。

Saket Kalia, Barclays.

薩基特·卡利亞，巴克萊銀行。

Hey, good evening. This is Ryan Parley on for Saket. And Natalie, maybe first for you. That was some helpful commentary just around the buybacks and de-levering activity this quarter, understanding the cash constrictions. Just going forward, as we take a look at the next near and mid-term, -- can you talk about how you're going to be balancing buybacks and de-levering over the next few quarters?

嘿，晚上好。我是 Saket 的 Ryan Parley。娜塔莉，也許第一個對你來說。這是圍繞本季回購和去槓桿化活動的一些有用的評論，有助於理解現金緊張。展望未來，當我們展望下一個近期和中期時，您能談談您將如何在未來幾季平衡回購和去槓桿化嗎？

Yes. I would say it's going to be a consistent approach that we've taken to the last handful of quarters. Of course, we all know what's happening in the debt market and the cost of debt now is very different than the environment than we were in a year ago. But both are very important for us in terms of capital allocation strategy. We'll strike the right balance quarter in, quarter out, not a specific percentage because we flex based on the macroeconomic indicators.

是的。我想說，這將是我們在過去幾季採取的一致方法。當然，我們都知道債務市場正在發生什麼，現在的債務成本與一年前的環境有很大不同。但就資本配置策略而言，兩者對我們都非常重要。我們將每季實現適當的平衡，而不是特定的百分比，因為我們根據宏觀經濟指標進行調整。

So everything from the cost of debt, the timing of the cash, Q2 is our highest use of cash. So we were largely constricted in terms of what else we could do for additional capital allocation -- but we also know we're highly cash generators. So the back half of capital allocation will be very, very balanced and very interesting.

因此，從債務成本、現金時機來看，第二季是我們現金使用率最高的。因此，我們在額外資本配置方面能做的事情在很大程度上受到限制，但我們也知道我們是高度現金生產者。所以後半段的資本配置將會非常非常平衡，也非常有趣。

Got it. That's super helpful. Maybe for my follow-up, I'd just love to dig into one other part of net adds. That was really interesting to see. Could you talk about first year retention and how that's been trending? Because I know we talked about that at Analyst Day. Just what do you think is -- are there any improvements there? And how has that been trending?

知道了。這非常有幫助。也許對於我的後續行動，我只是想深入研究網路添加的另一部分。這真的很有趣。您能談談第一年的留存率以及其趨勢如何嗎？因為我知道我們在分析師日討論過這個問題。您認為—有什麼改進嗎？趨勢如何？

Yes. So our first year retention rate is very consistent to up. And I'd point that to our continuously innovative product road map, the range of values and services that we are bringing to market is very, very competitive, very relevant and highly in demand and we make sure that we're not only bringing great products and services to market, but that we're competitively priced and our messaging and our personalization is a cut through to the customers as possible so that they understand what we can be for them in their ever increasing risk of cyber safety. And so yes, we see very, very solid results in first year -- in all of our retention rates, which is why we've been able to scale up to 78% overall. But yes, the first year renewal rates are higher than they have been in the past.

是的。所以我們的第一年保留率非常穩定。我想指出的是，根據我們不斷創新的產品路線圖，我們為市場帶來的價值和服務範圍非常非常有競爭力，非常相關且需求量很大，我們確保我們不僅帶來了偉大的產品我們的產品和服務推向市場，但我們的價格具有競爭力，我們的訊息傳遞和個人化服務盡可能地切入客戶，以便他們了解我們可以為他們提供什麼，以應對日益增加的網路安全風險。所以，是的，我們在第一年就看到了非常非常紮實的成果——在我們所有的保留率方面，這就是為什麼我們能夠將整體規模擴大到 78%。但是，是的，第一年的續約率比過去還要高。

Very helpful. Thanks, guys.

非常有幫助。謝謝，夥計們。

Thank you.

謝謝。

Peter Levine, Evercore.

彼得‧萊文，Evercore。

Thank you for taking my questions (technical difficulty) maybe to you. You talked about Genie AI I know you -- so with -- I think you mentioned, I think it was like 1.6, 1.7 downloads. But Vincent, in your commentary, you called out, I think, so more to come on that front, but will enable debt AI across your core offerings. Can you maybe just talk a little bit about your kind of what the aspirations are there in terms of putting that across the platform? And then maybe explain to us the monetization opportunities or if it's more of a resin tool just to kind of be more competitive. Just help us kind of balance those,

感謝您向您提出我的問題（技術難度）。你談到了 Genie AI，我了解你——所以——我想你提到過，我認為這就像 1.6、1.7 的下載。但是文森特，在你的評論中，我認為你呼籲在這方面進行更多的工作，但將使債務人工智慧貫穿你的核心產品。您能否簡單談談您對於將其跨平台推廣的願望？然後也許向我們解釋一下貨幣化機會，或者它是否更像是一種樹脂工具，只是為了更具競爭力。只是幫助我們平衡這些，

Yes. It will be all of lever, but let me explain right. So definitely, we can see a very strong rise in scam, personalized scam and volume personalized scans the use of the eye. And when we came out with Genie we're singly focused on really developing our LLM to be able to spot those cans and then help our consumers detect what is a scam and what is not. And we did that also is a conversational interface, you can also decide on what's the with scam.

是的。這將是槓桿的全部，但讓我解釋一下。因此，我們可以肯定地看到詐騙、個人化詐騙和利用眼睛進行大量個人化掃描的數量急劇增加。當我們推出 Genie 時，我們專注於真正開發我們的法學碩士，以便能夠識別這些罐頭，然後幫助我們的消費者檢測什麼是騙局，什麼不是騙局。我們所做的也是一個對話式介面，你也可以決定什麼是騙局。

We've had 1.6 million downloads very strong models, and I think we're now ready to move that into our overall portfolio. We'll start first with the Norton 360 membership being the core Genie assistant or the anti-scam assistant in the first three level of our Norton 360 plan. And then we'll ramp up in features moving from tech scams to voice scams, to call blocks to scam insurance through the different plan, if you want all the way to Norton 360 with LifeLock. So that's coming now.

我們已經擁有 160 萬次下載的非常強大的模型，我認為我們現在已經準備好將其轉移到我們的整體產品組合中。我們首先將諾頓 360 會員資格作為諾頓 360 計劃前三級的核心 Genie 助手或反詐騙助手。然後，如果您想一直使用帶有 LifeLock 的 Norton 360，我們將透過不同的計劃增強從技術詐騙到語音詐騙、呼叫封鎖到詐騙保險的功能。所以現在就來了。

The first path of monetization is to help our customers to move and upgrade to the next level of plan that not only provide the current features of safety, but extend to all of those I've just mentioned. And there will be a Genie Pro cross-sell, if you want for those who wants to stand to the old plan and just want to have a stand-alone anti-scam tool.

貨幣化的第一個途徑是幫助我們的客戶移動和升級到下一個級別的計劃，該計劃不僅提供當前的安全功能，而且擴展到我剛才提到的所有功能。如果你想要那些想要堅持舊計劃並且只想擁有一個獨立的反詐騙工具的人，將會有 Genie Pro 交叉銷售。

And maybe the second question or follow-up here is benefits enrollment. I know this was the quarter I think most would sign up for it. So maybe can you just give us an update on how that pipeline kind of closed off for the quarter versus expectations? And then kind of if you think about how this season ended, any changes that you're making to the go to market to your partners to kind of accelerate that for next year?

也許第二個問題或後續問題是福利登記。我知道這是我認為大多數人都會報名參加的季度。那麼，您能否向我們提供有關本季管道關閉與預期的最新情況？然後，如果你想這個季節是如何結束的，你會對合作夥伴的上市做出任何改變，以加快明年的速度？

So we continue to grow our employee benefit channel double digit. It's both growing on acquiring new accounts, but also we're working with each account and putting the right marketing and communication engagement materials to have more sign-ups in those accounts. We've seen growth through the last few quarters. We have a very strong funnel. We've always had a very strong funnel. Now it comes more to another jump in growth, if you want.

因此，我們持續將員工福利管道成長兩位數。它不僅在獲取新帳戶方面不斷增長，而且我們正在與每個帳戶合作，並提供正確的行銷和溝通參與材料，以便在這些帳戶中吸引更多註冊。我們在過去幾個季度看到了成長。我們有一個非常強大的漏斗。我們一直有一個非常強大的漏斗。如果你願意的話，現在更多的是再次成長。

When it comes to the enrollment view where we can subscribe more customers if you want within those accounts. We obviously integrate everything we see the strong funnel and the activity in marketing I've just mentioned into our forecast. And I think we feel very good about the continued development of that channel in which we -- and are also new products and go all the way to a full reputation Defender service for executives and below.

當談到註冊視圖時，如果您願意，我們可以在這些帳戶中訂閱更多客戶。顯然，我們將我剛才提到的強大漏斗和行銷活動中看到的所有內容整合到我們的預測中。我認為我們對該通路的持續發展感到非常滿意，我們在該通路中也是新產品，並一直為高階主管及以下人員提供全面聲譽的 Defender 服務。

If I can just ask one more. Are these agreements when you go into a company and offer the benefits, is it an enterprise agreement? Or how does that get priced versus the consumer model? Just curious in terms of the pricing model versus the...

如果我能再問一個就好了。當你進入一家公司並提供福利時，這些協議是企業協議嗎？或者與消費者模式相比，它的定價如何？只是好奇定價模型與...

Absolutely. So the pricing is kind of an enterprise agreement, but it's on a perceived basis. It either is fully sponsored or partially sponsored by the employer benefit plans and the pricing is slightly below, but not materially below what you charge for the consumers.

絕對地。因此，定價是一種企業協議，但它是基於感知的基礎。它要么完全由雇主福利計劃贊助，要么部分由雇主福利計劃贊助，價格略低於您向消費者收取的費用，但不會大幅低於您的價格。

Tomer Zilberman, Bank of America.

托默·齊伯曼，美國銀行。

Great. Hi, guys. I wanted to go back to the direct customer net adds. So when we look at the $389,000, how much of that would you say is coming from the ads of international and mobile versus what you said the better identity sales on the back of the national data breach. And really, what I'm trying to ask here is what do you think is the normalized customer growth in the remainder of the year?

偉大的。嗨，大家好。我想回到直接客戶網路添加。因此，當我們查看 389,000 美元時，您認為其中有多少來自國際和行動廣告，與您所說的國家資料外洩背後的更好的身份銷售相比。事實上，我在這裡想問的是，您認為今年剩餘時間內的正常客戶成長是多少？

This is Natalie. So I'll take that one. The majority of our customer count net adds sequentially has consistently been coming from, as we expand and broaden solutions available on mobile as well as our international market expansion. So both of those have been consistent levers and consistent drivers of growth for us in customer acquisition as we expand and increase the penetration, increase the value proposition that we've got with our mobile users. And that stayed consistent in Q2. And then on top of that, we saw the increased demand coming from the identity offerings. On a go-forward basis, we it is very, very critical for us to continuously focus on healthy customer acquisition.

這是娜塔莉。所以我會接受那個。隨著我們擴展和拓寬行動裝置上可用的解決方案以及我們的國際市場擴張，我們的大部分淨增加客戶數量始終來自我們。因此，隨著我們擴大和提高滲透率，提高我們對行動用戶的價值主張，這兩者一直是我們在客戶獲取方面持續成長的槓桿和持續驅動力。這在第二季度保持一致。最重要的是，我們看到身份產品的需求不斷增加。展望未來，持續專注於健康的客戶獲取對我們來說非常非常重要。

We do that on a global basis across all of our brands across all of our platforms. And we will continue to expand internationally as we identify new markets of healthy customer acquisition -- and yes, we're just getting started in terms of expanding the value proposition and the engagement that we've got with the ever-growing mobile users and customers in our portfolio. In addition, we will continue to foster all of the brands across our portfolio. All of them are critical.

我們在全球所有品牌、所有平台上都這樣做。隨著我們確定健康的客戶獲取新市場，我們將繼續進行國際擴張——是的，我們在擴大價值主張和與不斷增長的行動用戶的互動方面才剛剛開始，我們的產品組合中的客戶。此外，我們將繼續培育我們產品組合中的所有品牌。所有這些都很關鍵。

And on a go-forward basis, we're going to be balancing our investments, whether it's product, the product road map and the technology solutions that we bring as well as combined with the different marketing channels that we've got to optimize a healthy customer acquisition that feeds our flywheel, feeds our increase in ARPU, feeds to cross-sell, feeds or upsell and therefore, feeds our retention and book -- accelerating bookings growth.

展望未來，我們將平衡我們的投資，無論是產品、產品路線圖和我們帶來的技術解決方案，以及與我們必須優化的不同行銷管道相結合的投資。 ，為我們的ARPU 成長提供動力，為交叉銷售、提供或追加銷售提供動力，從而提高我們的保留率和預訂量，從而加速預訂量的成長。

Got it. And maybe as a follow-up, looking at the guidance raise this year for the full year, I saw in the quarter, your negative currency impact went down to about $1 million from $7 million over the last few quarters. How much of that is driving your guidance raise versus just the better business trends that you're seeing?

知道了。也許作為後續行動，看看今年全年的指導上調，我在本季度看到，貨幣的負面影響從過去幾季的 700 萬美元降至約 100 萬美元。與您看到的更好的業務趨勢相比，這在多大程度上推動了您的指引提高？

Yes, it's immaterial for us. And then when we set our -- when we revise our guide, we just use the current currency rates that we all know as of right now. We don't predict or project any currency fluctuations.

是的，這對我們來說並不重要。然後，當我們制定我們的指南時，當我們修改指南時，我們只使用我們現在都知道的當前匯率。我們不預測或預期任何貨幣波動。

Got it. Okay. Thank you.

知道了。好的。謝謝。

Hamza Fodderwala, Morgan Stanley.

哈姆扎·福德瓦拉，摩根士丹利。

Good evening. Thank you for taking my question. So I wanted a solid quarter in terms of top line, really strong sort of record net adds. I wanted to have a question on the cost side of the equation. The EBIT margin, I think, was slightly higher than it was in recent quarters. Just curious on the cost side, what are you seeing in terms of advertising costs. I know in the past that kind of gone up and down. So I'm curious what you're seeing currently?

晚安.感謝您回答我的問題。因此，我希望在營收方面有一個穩定的季度，真正強勁的淨成長記錄。我想問一個關於成本方面的問題。我認為，息稅前利潤率略高於最近幾季。只是對成本方面感到好奇，您在廣告成本方面看到了什麼。我知道過去這種情況有起有落。所以我很好奇你現在看到了什麼？

Yes, it varies across all the brands, quite honestly, in all the different channels. And we've got such a diverse set of channels and increasing marketing spend going to those channels. I think you're specifically talking about the gross margin rate. And yes, we do see shifts across our marketing portfolio. We optimize for healthy ROI customer acquisition, and we leverage the different channel diversification that we've got.

是的，老實說，在所有不同的管道中，所有品牌的情況都有所不同。我們擁有如此多樣化的管道，並且在這些管道上的行銷支出不斷增加。我認為你具體談論的是毛利率。是的，我們確實看到了我們的行銷組合的轉變。我們針對健康的投資報酬率客戶獲取進行最佳化，並利用我們擁有的不同管道多元化。

In terms of what's -- there is different accounting treatment, depending on what marketing channels there are. So I would encourage you to consider that when you think about the gross margin versus the op margin versus the EBITDA margin, -- and that's why we're able to hold the operating margin so consistently quarter-over-quarter. It's just P&L profile of where the marketing channel expense for this quarter actually hit.

就內容而言，根據行銷管道的不同，有不同的會計處理方法。因此，當您考慮毛利率、營業利潤率和 EBITDA 利潤率時，我鼓勵您考慮這一點，這就是我們能夠季度環比保持營業利潤率的原因。這只是本季行銷通路費用實際影響的損益表。

Maybe can I be more specific in the direct-to-consumer side of the business, how would you say advertising costs have been trending in the last few quarters up or down?

也許我可以在直接面向消費者的業務方面更具體一些，您認為過去幾季的廣告成本呈上升或下降趨勢？

Yeah. So overall, I would say it is definitely getting more competitive. Now keep in mind, our tax by brand and tax by channel are very, very different. And so overall, it's stable to up in terms of cost of acquisition. But when you think about a side by side and when we talk about our business sequentially, when we talk about taking and leveraging the increased market demand for LifeLock, that's obviously going to be a much, much higher absolute dollar [CAC] to acquire that much higher value customer than if you were to think about a lower AV security customer add in a new growth market internationally.

是的。總的來說，我想說它肯定會變得更具競爭力。現在請記住，我們的品牌稅和通路稅是非常非常不同的。整體而言，購置成本穩定上升。但是，當您並排考慮時，當我們依次討論我們的業務時，當我們討論利用和利用 LifeLock 不斷增長的市場需求時，顯然，要獲得該產品，絕對成本 [CAC] 會高得多。新增長市場中較低的AV 安全客戶相比，價值較高的客戶。

Got it. So it's a higher lifetime value subscriber, but maybe initially might be a little bit higher CAC. Does that make sense. Thank you.

知道了。因此，它是一個生命週期價值較高的訂戶，但最初的 CAC 可能會稍微高一些。這樣有道理嗎？謝謝。

Dan Bergstrom, RBC.

丹·伯格斯特羅姆，加拿大皇家銀行。

It's [Matt Hedberg] (technical difficulty) you just mentioned accelerated bookings growth in your answer to one of the last questions. that 5% constant currency number, really nice to see, especially following the uptick of 4% last quarter. And then it looks like the key assumptions moved up to 4% to 5% from 3% to 5% last quarter. Maybe just what could that 5% portend for revenue growth over the next year? Should we think of maybe the difference between bookings and revenue growth, it's maybe narrowing or maybe solidifying a potential around revenue acceleration? Just any further thoughts around accelerating bookings growth here?

[Matt Hedberg]（技術難度）您剛剛在回答最後一個問題時提到了預訂量的加速增長。 5% 的固定貨幣數字，真的很高興看到，特別是在上個季度上漲 4% 之後。然後看起來關鍵假設從上個季度的 3% 到 5% 上升到 4% 到 5%。也許這 5% 預示著明年的營收成長？我們是否應該考慮預訂量和收入成長之間的差異，它可能正在縮小，也可能正在鞏固收入加速的潛力？關於加速預訂成長還有什麼進一步的想法嗎？

Yes. A large -- the majority of our portfolio or our book of business is going to be ratable. And so it's about rolling off the balance sheet relatively consistently. We don't have a ton of seasonality in terms of the size of our quarters. And so largely speaking, super high level, it will roll off over the next 12-months. We do have our monthly subscribers, which is still a small share of our business, you would see that hitting bookings and revenue in the same period because we recognize the revenue as we deliver on the service so monthly. But largely speaking, our portfolio and our book of business is on an annual subscription and we -- the majority of that is ratable over the next quarters.

是的。我們的大部分投資組合或業務簿都將進行評級。因此，這是相對一致地滾動資產負債表。就我們宿舍的大小而言，我們沒有太多的季節性。總的來說，超高水平，它將在未來 12 個月內推出。我們確實有每月的訂戶，這仍然只占我們業務的一小部分，您會看到同一時期的預訂量和收入，因為我們在每月提供服務時確認了收入。但總的來說，我們的投資組合和業務簿是按年度訂閱的，其中大部分將在接下來的幾個季度進行評級。

That's helpful. And then maybe a little more on any action that you maybe undertook outline that social security number breach. I mean, did you change marketing messaging channels? It seems like you had pretty prescient timing around the personal data exposure product. Any specifics you may have done to lean into it a little further?

這很有幫助。然後可能會更多地介紹您可能採取的任何行動，概述社會安全號碼洩露事件。我的意思是，您是否改變了行銷訊息管道？看來您對個人資料暴露產品的時機很有先見之明。為了進一步了解它，您可能做了哪些具體的事情？

Yes. We did a full reallocation in terms of assessing where to put the marketing dollars a reallocation into the LifeLock business for sure in the brands and services. And with that, we did a healthy balance across the different channels to go where the demand was. There's a lot of demand for identity, obviously, in SEO as well as paid search. And then also the affiliate channels really helped us with referral traffic to bring them to our platform on the LifeLock side.

是的。我們進行了全面的重新分配，評估將行銷資金重新分配到 LifeLock 業務的品牌和服務方面。這樣，我們就在不同管道之間實現了健康的平衡，以滿足需求。顯然，在 SEO 和付費搜尋中，對身分的需求很大。然後，聯盟管道也確實幫助我們獲得了推薦流量，將他們帶到了我們 LifeLock 方面的平台。

That's great. Thank you.

那太棒了。謝謝。

Thank you.

謝謝。

Thank you for your questions. That concludes our Q&A session. I would now like to pass the conference to Vincent Pilette, CEO Gen Digital Inc., for closing remarks.

謝謝您的提問。我們的問答環節到此結束。現在我想請 Gen Digital Inc. 執行長 Vincent Pilette 致閉幕詞。

Thank you. As the leader 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. We have a compelling AI-enabled product road map focused on security, financial safety, personal data control and other trust-based solutions.

謝謝。作為消費者網路安全領域的領導者，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。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、個人資料控制和其他基於信任的解決方案。

Our go-to-market strategy is effective, and we have a long track record of serving our customers. 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.

我們的市場進入策略是有效的，並且我們在為客戶提供服務方面擁有悠久的記錄。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。

That concludes today's call. Thank you for your participation, and enjoy the rest of your day.

今天的電話會議到此結束。感謝您的參與，祝您有個愉快的一天。