Record quarterly revenue of $134.4 million, up
25% year-over-year
Q1 cumulative ending members of approximately
3.89 million, up 21% year-over-year
Record gross new members of 421,000, up 22%
year-over-year
LifeLock, Inc. (NYSE: LOCK), an
industry leader in identity theft protection, today announced
financial results for the first quarter ended March 31,
2015.
First Quarter 2015 Financial Highlights:
- Revenue: Total revenue was
$134.4 million for the first quarter of 2015, up 25% from $107.6
million for the first quarter of 2014. Consumer revenue was $128.2
million for the first quarter of 2015, up 27% from $101.0 million
for the first quarter of 2014. Enterprise revenue was $6.2 million
for the first quarter of 2015, compared with $6.6 million for the
first quarter of 2014.
- Net loss: Net loss was $9.2
million for the first quarter of 2015, compared with a net loss of
$4.3 million for the first quarter of 2014. Net loss per diluted
share was $0.10 for the first quarter of 2015 based on 94.0 million
weighted-average shares outstanding, compared with a net loss per
diluted share of $0.05 for the first quarter of 2014 based on 91.9
million weighted-average shares outstanding.
- Adjusted Net Loss: Adjusted net
loss was $5.2 million for the first quarter of 2015, compared with
an adjusted net loss of $1.0 million for the first quarter of 2014.
Adjusted net loss per diluted share was $0.06 for the first quarter
of 2015 based on 94.0 million weighted-average shares outstanding,
compared with an adjusted net loss per diluted share of $0.01 for
the first quarter of 2014 based on 91.9 million weighted-average
shares outstanding.
- Adjusted EBITDA: Adjusted EBITDA
was $(3.0) million for the first quarter of 2015, compared with
$0.7 million for the first quarter of 2014.
- Cash Flow: Cash flow from
operations was $20.5 million for the first quarter of 2015, leading
to free cash flow of $17.7 million after taking into consideration
$2.8 million of capital expenditures. This compares with cash flow
from operations of $18.3 million and free cash flow of $14.4
million, after taking into consideration $3.9 million of capital
expenditures, for the first quarter of 2014.
- Balance Sheet: Total cash and
marketable securities at the end of the first quarter of 2015 was
$293.4 million, up from $273.9 million at the end of the fourth
quarter of 2014.
“Against a backdrop of continued data breaches, we produced the
best quarter of gross new member additions in the history of the
company.” said Todd Davis, LifeLock’s Chairman and CEO. “We believe
this performance is indicative of the power of our brand and the
growing recognition of the differentiated nature of our
offerings.”
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below
under the heading “Non-GAAP Financial Measures.”
First Quarter 2015 & Recent Business Highlights:
- Recorded the 40th consecutive quarter
of sequential growth in revenue and cumulative ending members.
- Added approximately 421,000 gross new
members in the first quarter of 2015 and ended the quarter with
approximately 3.89 million members.
- Achieved a retention rate of 87.8% for
the first quarter of 2015, compared with 87.5% for the first
quarter of 2014.
- Increased monthly average revenue per
member to $11.38 for the first quarter of 2015 from $10.81 for the
first quarter of 2014.
- Announced a partnership with Sam’s
Club, a division of Wal-Mart Stores, to offer LifeLock services to
Sam’s Club members on-line and in a pilot store program.
- Welcomed two new executives to LifeLock
by adding Ignacio Martinez as Chief Risk Officer and Peter Levinson
as SVP of Product & Technology.
Guidance:
As of April 29, 2015, we are initiating guidance for our
second quarter of 2015 as well for the full year 2015.
- Second Quarter 2015 Guidance:
Total revenue is expected to be in the range of $143 million to
$144 million. Adjusted net income per share is expected to be in
the range of $0.08 to $0.09 based on approximately 100 million
fully diluted weighted-average shares outstanding. Adjusted EBITDA
is expected to be in the range of $11 million to $12 million.
- Full Year 2015 Guidance: Total
revenue is expected to be in the range of $584 million to $590
million. Adjusted net income per diluted share is expected to be in
the range of $0.64 to $0.67 based on approximately 102 million
fully diluted weighted-average shares outstanding and a cash tax
rate of 5%. Adjusted EBITDA is expected to be in the range of $77
million to $80 million. Free cash flow is expected to be in the
range of $107 million to $112 million.
Conference Call Details:
- What: LifeLock first quarter
2015 financial results.
- When: Wednesday, April 29,
2015 at 2PM PT (5PM ET).
- Dial in: To access the call in
the United States, please dial (877) 407-3982, and for
international callers dial (201) 493-6780. Callers may provide
confirmation number 13605513 to access the call more quickly, and
are encouraged to dial into the call 10 to 15 minutes prior to the
start to prevent any delay in joining.
- Webcast: http://investor.lifelock.com/ (live and
replay)
- Replay: A replay of the call
will be available via telephone for seven days, beginning two hours
after the call. To listen to the telephone replay in the United
States, please dial (877) 870-5176, and for international callers
dial (858) 384-5517 and enter access code 13605513.
About LifeLock
LifeLock, Inc. (NYSE:LOCK) is a
leading provider of proactive identity theft protection services
for consumers and consumer risk management services for
enterprises. LifeLock’s threat detection, proactive identity
alerts, and comprehensive remediation services help provide peace
of mind for consumers amid the growing threat of identity theft.
Leveraging unique data, science and patented technology from ID
Analytics, LLC., a wholly owned subsidiary, LifeLock offers
identity theft protection that goes significantly beyond credit
monitoring. As part of its commitment to help fight identity theft,
LifeLock works to train law enforcement and partners with a variety
of non-profit organizations to help consumers establish positive
habits to combat this threat.
Forward-Looking Statements
This press release contains “forward-looking” statements, as
that term is defined under the federal securities laws, including
statements regarding the power of our brand and the differentiated
nature of our offerings, and our expected total revenue, adjusted
net income (loss) per diluted share, adjusted EBITDA, and free cash
flow for the second quarter of 2015 and for fiscal year 2015. These
forward-looking statements are based on our current assumptions,
expectations, and beliefs and are subject to substantial risks,
uncertainties, assumptions, and changes in circumstances that may
cause our actual results, performance, or achievements to differ
materially from those expressed or implied in any forward-looking
statement.
The risks and uncertainties referred to above include, but are
not limited to, risks associated with our ability to maintain
profitability on an annual basis; our ability to protect our
customers’ confidential information; our ability to maintain and
enhance our brand recognition and reputation; the competitive
nature of the industries in which we conduct our business; our
ability to retain our existing customers and attract new customers;
our ability to improve our services and develop and introduce new
services with broad appeal; our ability to maintain existing and
secure new relationships with strategic partners; the outcome of
any litigation or regulatory proceeding; and other “Risk Factors”
set forth in our most recent SEC filings.
Further information on these and other factors that could affect
our financial results and the forward-looking statements in this
press release is included in our SEC filings, including our Annual
Report on Form 10-K for the year ended December 31, 2014,
particularly under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.” Copies of these documents are available on our
Investor Relations website at http://investor.lifelock.com/ or the SEC's website
at www.sec.gov.
We assume no obligation and do not intend to update these
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
Our reported results include certain non-GAAP financial
measures, including adjusted net income (loss), adjusted net income
(loss) per diluted share, adjusted EBITDA, and free cash flow. We
calculate adjusted net income (loss) as net income (loss) excluding
amortization of acquired intangible assets, share-based
compensation, income tax benefits and expenses resulting from
changes in our deferred tax assets, and acquisition related
expenses. Historically, in calculating adjusted net income, we also
excluded changes in fair value of warrant liabilities and changes
in fair value of embedded derivatives in the periods in which those
items occurred. We do not currently have any warrant liabilities or
embedded derivatives. Accordingly, we will only include those items
of income and expense in our reconciliation of adjusted net income
for period-over-period comparisons. We calculate adjusted net
income (loss) per diluted share by dividing our adjusted net income
(loss) by the weighted-average diluted shares outstanding. We
calculate adjusted EBITDA as net income (loss) excluding
depreciation and amortization, share-based compensation, interest
expense, interest income, other income (expense), income tax
(benefit) expense, and acquisition related expenses. Historically,
in calculating adjusted EBITDA, we also excluded changes in fair
value of warrant liabilities and changes in fair value of embedded
derivatives in the periods in which those items occurred. We do not
currently have any warrant liabilities or embedded derivatives.
Accordingly, we will only include those items of income and expense
in our reconciliation of adjusted EBITDA for period-over-period
comparisons. We define free cash flow as net cash provided by
operating activities less net cash used in investing activities for
acquisitions of property and equipment.
We have included adjusted net income (loss), adjusted net income
(loss) per diluted share, and adjusted EBITDA in this press release
because they are key measures used by us to understand and evaluate
our core operating performance and trends, to prepare and approve
our annual budget, and to develop short- and long-term operational
plans. In particular, the exclusion of certain expenses in
calculating adjusted net income (loss) and adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our
core business. Additionally, adjusted EBITDA is a key financial
measure used in determining management’s incentive
compensation.
We have included free cash flow in this press release because we
believe it typically presents a more conservative measure of cash
flow as purchases of property and equipment are necessary
components of ongoing operations. We believe that this non-GAAP
financial measure is useful in evaluating our business because free
cash flow reflects the cash surplus available to fund the expansion
of our business after payment of capital expenditures relating to
the necessary components of ongoing operations. We also believe
that the use of free cash flow provides consistency and
comparability with our past financial performance, facilitates
period-to-period comparisons of operations, and also facilitates
comparisons with other companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results.
Although adjusted net income, adjusted EBITDA, and free cash
flow are frequently used by investors in their evaluations of
companies, these non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. Because of these limitations, these non-GAAP financial
measures should be considered alongside other financial performance
measures.
We have not reconciled adjusted net income (loss) per diluted
share guidance to net income (loss) per diluted share guidance or
adjusted EBITDA guidance to net income (loss) guidance because we
do not provide guidance for share-based compensation expense,
provision for income taxes, interest income, interest expense,
change in fair value of warrant liabilities, change in fair value
of embedded derivatives, other income and expenses, depreciation
expense, amortization of intangible assets, acquisition expenses,
legal reserves and settlements, or income tax (benefit) expense,
which are reconciling items between net income (loss) and adjusted
net income (loss) and net income (loss) and adjusted EBITDA. As
items that impact net income (loss) are out of our control and/or
cannot be reasonably predicted, we are unable to provide such
guidance. Accordingly, reconciliation to net income (loss) is not
available without unreasonable effort. For a reconciliation of
historical non-GAAP financial measures to the nearest comparable
GAAP measures, see the reconciliation tables included in this press
release.
LifeLock, Inc.
Condensed Consolidated Statements of
Operations
(in thousands, except per share
amounts)
(Unaudited)
Three Months EndedMarch
31,
2015 2014 Revenue: Consumer
revenue $ 128,201 $ 100,995 Enterprise revenue 6,207 6,591
Total revenue 134,408 107,586 Cost of services 34,556
29,957 Gross profit 99,852 77,629 Costs and expenses: Sales
and marketing 77,079 56,539 Technology and development 16,866
12,729 General and administrative 18,955 13,335 Amortization of
acquired intangible assets 2,084 2,231 Total costs
and expenses 114,984 84,834 Loss from operations
(15,132 ) (7,205 ) Other income (expense): Interest expense (89 )
(87 ) Interest income 117 60 Other (80 ) (11 ) Total other expense
(52 ) (38 ) Loss before provision for income taxes (15,184 ) (7,243
) Income tax benefit (6,026 ) (2,948 ) Net loss $ (9,158 ) $ (4,295
) Net loss attributable per share to common stockholders Basic and
diluted $ (0.10 ) $ (0.05 ) Weighted-average common shares
outstanding: Basic and diluted 94,033 91,903
LifeLock, Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(Unaudited)
March 31, December 31, 2015 2014
Assets Current assets: Cash and cash equivalents $ 159,885 $
146,569 Marketable securities 133,467 127,305 Trade and other
receivables, net 9,502 10,220 Deferred tax assets, net 27,269
21,243 Prepaid expenses and other current assets 12,159
7,841 Total current assets 342,282 313,178 Property and
equipment, net 23,359 24,204 Goodwill 159,342 159,342 Intangible
assets, net 36,231 38,315 Deferred tax assets, net - non-current
22,494 22,494 Other non-current assets 5,827 5,783
Total assets $ 589,535 $ 563,316
Liabilities and
stockholders' equity Current liabilities: Accounts payable $
13,556 $ 11,543 Accrued expenses and other liabilities 70,764
67,025 Deferred revenue 167,983 145,206 Total current
liabilities 252,303 223,774 Other non-current liabilities 6,712
6,706 Total liabilities 259,015 230,480 Commitments
and contingencies Stockholders' equity: Common stock 94 94
Additional paid-in capital 502,712 495,912 Accumulated other
comprehensive loss (75 ) (116 ) Accumulated deficit (172,211 )
(163,054 ) Total stockholders' equity 330,520 332,836
Total liabilities and stockholders' equity $ 589,535 $
563,316
LifeLock, Inc.
Condensed Consolidated Statements of
Cash Flows
(in thousands)
(Unaudited)
Three Months EndedMarch
31,
2015 2014 Operating
activities Net loss $ (9,158 ) $ (4,295 ) Adjustments to
reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 4,295 3,861 Share-based compensation
5,370 4,001 Provision for doubtful accounts 52 272 Amortization of
premiums on marketable securities 670 366 Deferred income tax
benefit (6,026 ) (2,951 ) Other 82 7 Change in operating assets and
liabilities: Trade and other receivables (295 ) (305 ) Prepaid
expenses and other current assets (4,319 ) (2,816 ) Other
non-current assets (44 ) 251 Accounts payable 2,563 2,776 Accrued
expenses and other liabilities 4,556 (835 ) Deferred revenue 22,777
17,213 Other non-current liabilities 7 771 Net cash
provided by operating activities 20,530 18,316
Investing
activities Acquisition of property and equipment (2,816 )
(3,927 ) Purchases of marketable securities (39,379 ) (5,797 ) Sale
and maturities of marketable securities 33,438 6,921
Net cash used in investing activities (8,757 ) (2,803 )
Financing activities Proceeds from share-based compensation
plans 1,773 4,432 Payments for employee tax withholdings related to
restricted stock units and awards (230 ) (154 ) Net cash provided
by financing activities 1,543 4,278 Net increase in
cash and cash equivalents 13,316 19,791 Cash and cash equivalents
at beginning of period 146,569 123,911 Cash and cash
equivalents at end of period $ 159,885 $ 143,702
Share-Based Compensation
(in thousands)
(Unaudited)
Three Months Ended March 31, 2015
2014 Costs of services $ 372 $ 232
Sales and marketing 932 586 Technology and development 1,709 1,555
General and administrative 2,357 1,628 Total share-based
compensation expense $ 5,370 $ 4,001
Key Financial and Operating
Metrics
(in thousands except percentages and
per member data)
(Unaudited)
Three Months Ended March 31,
2015 2014 Revenue:
Consumer revenue $ 128,201 $ 100,995 Enterprise revenue 6,207
6,591 Total revenue $ 134,408 $ 107,586 Adjusted net
loss $ (5,230 ) $ (1,014 ) Adjusted EBITDA $ (2,967 ) $ 657 Free
cash flow $ 17,714 $ 14,389 Cumulative ending members 3,888 3,221
Gross new members 421 344 Member retention rate 87.8 % 87.5 %
Average cost of acquisition per member $ 176 $ 155 Monthly average
revenue per member $ 11.38 $ 10.81 Enterprise transactions 61,535
52,709
Reconciliation of GAAP to Adjusted
Results
(in thousands except percentages and
per member data)
(Unaudited)
Three Months EndedMarch
31,
2015 2014 Reconciliation of
Gross Profit to Adjusted Gross Profit Gross profit $ 99,852 $
77,629 Share-based compensation 372 232 Adjusted
gross profit $ 100,224 $ 77,861
Reconciliation of Sales and Marketing
Expenses to Adjusted Sales and
Marketing Expenses
Sales and marketing expenses $ 77,079 $ 56,539 Share-based
compensation (932 ) (586 ) Adjusted sales and marketing expenses $
76,147 $ 55,953
Reconciliation of Technology and
Development Expenses to Adjusted Technology
and Development Expenses
Technology and development expenses $ 16,866 $ 12,729 Share-based
compensation (1,709 ) (1,555 ) Adjusted technology and development
expenses $ 15,157 $ 11,174
Reconciliation of General and
Administrative Expenses to Adjusted General
and Administrative Expenses
General and administrative expenses $ 18,955 $ 13,335 Share-based
compensation (2,357 ) (1,628 ) Legal reserves and settlements
(2,500 ) — Adjusted general and administrative expenses $
14,098 $ 11,707
Reconciliation of Loss from
Operations to Adjusted Loss from Operations Loss from
operations $ (15,132 ) $ (7,205 ) Share-based compensation 5,370
4,001 Amortization of acquired intangible assets 2,084 2,231 Legal
reserves and settlements 2,500 — Adjusted loss from
operations $ (5,178 ) $ (973 )
Reconciliation of Net Loss to
Adjusted Net Loss Net loss $ (9,158 ) $ (4,295 ) Amortization
of acquired intangible assets 2,084 2,231 Share-based compensation
5,370 4,001 Deferred income tax benefit (6,026 ) (2,951 ) Legal
reserves and settlements 2,500 — Adjusted net loss $
(5,230 ) $ (1,014 )
Three Months EndedMarch
31,
2015 2014
Reconciliation of Net Loss per Diluted Share to Adjusted Net
Loss per Diluted Share Net loss per diluted share $ (0.10 ) $
(0.05 ) Adjustments to net loss 0.04 0.04 Adjustments to diluted
shares — — Adjusted net loss per diluted share $
(0.06 ) $ (0.01 )
Reconciliation of Net Loss to Adjusted
EBITDA Net loss $ (9,158 ) $ (4,295 ) Depreciation and
amortization 4,295 3,861 Share-based compensation 5,370 4,001
Interest expense 89 87 Interest income (117 ) (60 ) Other 80 11
Income tax benefit (6,026 ) (2,948 ) Legal reserves and settlements
2,500 — Adjusted EBITDA $ (2,967 ) $ 657
Reconciliation of Net Cash Provided by Operating Activities to
Free Cash Flow Net cash provided by operating activities $
20,530 $ 18,316 Acquisitions of property and equipment (2,816 )
(3,927 ) Free cash flow $ 17,714 $ 14,389
Media Contact:LifeLock, Inc.Becca Youngs,
415-767-7752Media@lifelock.comorInvestor Relations
Contact:ICR for LifeLockGreg Kleiner, 480-457-5000Investor.relations@lifelock.com
Lifelock, Inc. (delisted) (NYSE:LOCK)
Historical Stock Chart
Von Jul 2024 bis Aug 2024
Lifelock, Inc. (delisted) (NYSE:LOCK)
Historical Stock Chart
Von Aug 2023 bis Aug 2024