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LifeLock Announces 2016 First Quarter Results

TEMPE, Ariz., Apr 27, 2016 (BUSINESS WIRE) -- LifeLock, Inc. LOCK, +0.92% an industry leader in identity theft protection, today announced financial results for the first quarter ended March 31, 2016.

First Quarter 2016 Financial Highlights:

  • Revenue: Total revenue was $159.3 million for the first quarter of 2016, up 18% from $134.4 million for the first quarter of 2015. Consumer revenue was $151.9 million for the first quarter of 2016, up 19% from $128.2 million for the first quarter of 2015. Enterprise revenue was $7.3 million for the first quarter of 2016, up 18% from $6.2 million for the first quarter of 2015.
  • Net Loss: Net loss was $11.7 million for the first quarter of 2016, compared with net loss of $9.2 million for the first quarter of 2015. Net loss per diluted share was $0.12 for the first quarter of 2016 based on 94.7 million weighted-average shares outstanding, compared with net loss per diluted share of $0.10 for the first quarter of 2015 based on 94.0 million weighted-average shares outstanding.
  • Adjusted Net Loss*: Adjusted net loss was $5.5 million for the first quarter of 2016, compared with adjusted net loss of $5.2 million for the first quarter of 2015. Adjusted net loss per diluted share was $0.06 for the first quarter of 2016 based on 94.7 million weighted-average shares outstanding, compared with adjusted net loss per diluted share of $0.06 for the first quarter of 2015 based on 94.0 million weighted-average shares outstanding.
  • Adjusted EBITDA*: Adjusted EBITDA was $(3.0) million for the first quarter of 2016, compared with $(3.0) million for the first quarter of 2015.
  • Cash Flow: Cash flow from operations was $10.9 million for the first quarter of 2016, leading to free cash flow* of $10.6 million after taking into consideration $4.8 million of capital expenditures and $2.0 million of payments for expenses incurred in connection with the FTC litigation. This compares with cash flow from operations of $20.5 million and free cash flow of $17.7 million, after taking into consideration $2.8 million of capital expenditures for the first quarter of 2015.
  • Balance Sheet: Total cash and marketable securities at the end of the first quarter of 2016 was $201.8 million, down from $246.7 million at the end of the fourth quarter of 2015, primarily as a result of the $51.9 million paid in the purchase of Company stock in connection with the previously announced $100 million share repurchase plan.

* 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".

Chief Executive Officer and President Hilary Schneider said, “We're pleased with our results for the first quarter, driven by strength in direct to consumer efforts and within our enterprise business, which posted the highest growth rates since we acquired ID Analytics in 2012." Continued Schneider, “We continue to make progress on key objectives including enhancing our position as the leader in identity theft protection, delivering innovative new products, reinforcing best in class policies and practices, and executing at the highest standards.”

First Quarter 2016 & Recent Business Highlights:

  • Appointed Doug Jeffries as Chief Administrative Officer. Mr. Jeffries will succeed Chris Power as the Chief Financial Officer following the release of the second quarter of fiscal 2016 financial results.
  • Recorded the 44 [th] consecutive quarter of sequential growth in revenue and cumulative ending members.
  • Added approximately 345,000 gross new members in the first quarter of 2016 and ended the quarter with approximately 4.3 million members.
  • Increased monthly average revenue per member to $11.90 for the first quarter of 2016 from $11.38 for the first quarter of 2015.
  • Acquired 4.4 million shares for $51.9 million in connection with the previously announced $100 million share repurchase program.

Guidance:

As of April 27, 2016, we are initiating guidance for our second quarter of 2016 as well as updating guidance for the full year 2016.

  • Second Quarter 2016 Guidance: Total revenue is expected to be in the range of $162 million to $164 million. Adjusted net income per diluted share is expected to be in the range of $0.03 to $0.04 based on approximately 98 million fully diluted weighted-average shares outstanding. Adjusted EBITDA is expected to be in the range of $5 million to $6 million. We will continue to migrate credit services for all premium members to a new data platform during the second quarter of 2016. With the continued migration, certain costs will be incurred in the second quarter of 2016 that in the past were recognized throughout the year. As a result, we will be incurring approximately $6 million of expense in the second quarter of 2016 which previously would have been incurred throughout the remainder of 2016. In future years, this will be an annual recurring event and will result in elevated cost of services during the second quarter and comparatively lower levels in the other quarters.
  • Full Year 2016 Guidance: Total revenue is expected to be in the range of $662 million to $670 million. Adjusted net income per diluted share is expected to be in the range of $0.73 to $0.77 based on approximately 99 million fully diluted weighted-average shares outstanding and a cash tax rate of 3%. Adjusted EBITDA is expected to be in the range of $84 million to $88 million. Free cash flow is expected to be in the range of $93 million to $98 million.

Conference Call Details:

  • What: LifeLock first quarter 2016 financial results.
  • When: Wednesday, April 27, 2016 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 13634083 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.
  • 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 13634083.

About LifeLock

LifeLock, Inc. LOCK, +0.92% 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...


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