SPY386.54-3.04 -0.78%
DIA314.19-1.40 -0.44%
IXIC13,358.79-230.04 -1.69%

Press Release: NortonLifeLock's Q3 Growth -3-

· 02/04/2021 16:12
===== ====== ====== ====== NORTONLIFELOCK INC. Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1) (2) (In millions, except per share data, unaudited) Three Months Ended ---------------------------------------- January 1, 2021 January 3, 2020 ------------------- ------------------- Operating income $ 280 $ 62 Stock-based compensation 21 36 Amortization of intangible assets 24 28 Restructuring and other costs 1 98 Acquisition and integration costs 1 -- Other (1) -- ---------- ---------- --- Operating income (Non-GAAP) $ 326 $ 224 ========== === ========== === Operating margin 43.8% 10.0% Operating margin (Non-GAAP) 51.0% 36.2% Net income $ 178 $ 2,845 Adjustments to income from continuing operations: Stock-based compensation 21 39 Amortization of intangible assets 24 28 Restructuring and other costs 1 98 Acquisition and integration costs 1 -- Other (1) -- Non-cash interest expense 2 7 Gain on sale of equity method investment -- (379) Loss from equity method investment -- 9 Total adjustments to GAAP income from continuing operations before income taxes 48 (198) Adjustment to GAAP provision for income taxes 8 3 ---------- --- ---------- --- Total adjustment to continuing operations, net of taxes 56 (195) Discontinued operations (5) (2,492) ---------- ---------- Net income (Non-GAAP) $ 229 $ 159 ========== === ========== === Diluted net income per share $ 0.30 $ 4.40 Adjustments to diluted net income per share: Stock-based compensation 0.04 0.06 Amortization of intangible assets 0.04 0.04 Restructuring and other costs 0.00 0.15 Acquisition and integration costs 0.00 -- Other (0.00) -- Non-cash interest expense 0.00 0.01 Gain on sale of equity method investment -- (0.59) Loss from equity method investment -- 0.01 Total adjustments to GAAP income from continuing operations before income taxes 0.08 (0.31) Adjustment to GAAP provision for income taxes 0.01 0.00 ---------- --- ---------- --- Total adjustment to continuing operations, net of taxes 0.09 (0.30) Discontinued operations (0.01) (3.85) ---------- ---------- Diluted net income per share (Non-GAAP) $ 0.38 $ 0.25 ========== === ========== === Diluted weighted-average shares outstanding 597 647 Incremental dilution -- -- ---------- --- ---------- --- Diluted weighted-average shares outstanding (Non-GAAP) 597 647 ========== === ========== === ______________________ (1) This presentation includes non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these non-GAAP measures, see Appendix A. (2) Amounts may not add due to rounding. NORTONLIFELOCK INC. Consumer Revenues, Consumer Reported Billings and Consumer Cyber Safety Metrics (In millions, except per user data, unaudited) Consumer Revenues (Non-GAAP) Three Months Ended ---------------------------------------------- January 1, January 3, 2021 2020 Variance in % ------------ ------------ ------------------ Revenues $ 639 $ 618 3% Exclude revenues from ID Analytics (1) -- (15) ------- ------- Consumer revenues (Non-GAAP) 639 603 6% Exclude foreign exchange impact (2) (10) -- ------- ------- Constant currency adjusted consumer revenues (Non-GAAP) $ 629 $ 603 4% ======= ======= Consumer Reported Billings (Non-GAAP) Three Months Ended ---------------------------------------------- January 1, January 3, 2021 2020 Variance in % ------------ ------------ ------------------ Revenues $ 639 $ 618 3% Add: Contract liabilities (end of period) 1,135 1,047 Less: Contract liabilities (beginning of period) (1,074) (1,016) ------- ------- Reported billings (Non-GAAP) 700 649 8% Exclude revenue from ID Analytics (1) -- (15) ------- ------- Consumer reported billings (Non-GAAP) $ 700 $ 634 10% ======= ======= Consumer Cyber Safety Metrics Three Months Ended ---------------------------------------------- January 1, October 2, 2021 2020 January 3, 2020 ------------ ------------ ------------------ Direct customer revenues $ 569 $ 563 $ 542 Partner revenues $ 70 $ 63 $ 61 Revenues from ID Analytics $ -- $ -- $ 15 Average direct customer count 20.8 20.6 20.1 Direct customer count (at quarter end) 21.0 20.7 20.1 Direct average revenue per user (ARPU) $ 9.10 $ 9.10 $ 8.99 ______________________ (1) In the three months ended April 3, 2020, we divested our ID Analytics solutions. We present consumer reported billings and consumer revenues to enhance comparability of the reported billings and revenues of our remaining solutions to the year ago period. (2) Calculated using year ago foreign exchange rates.

NORTONLIFELOCK INC.

Appendix A

Explanation of Non-GAAP Measures and Other Items

Objective of non-GAAP measures: We believe our presentation of non-GAAP financial measures, when taken together with corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company's operating performance for the reasons discussed below. Our management team uses these non-GAAP financial measures in assessing NortonLifeLock's performance, as well as in planning and forecasting future periods. Due to the importance of these measures in managing the business, we use non-GAAP measures in the evaluation of management's compensation. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

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February 04, 2021 16:12 ET (21:12 GMT)