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LifeLock Inc. Earnings: Membership Growth Boosts Sales, but Higher Costs Widen Losses

Image source: LifeLock.

LifeLock (NYSE:LOCK) reported first-quarter results on April 27. The ID theft protection services provider delivered a larger net loss as it ramps up its marketing investments to drive new customer acquisitions.

The raw numbers

Q1 2016

Q1 2015

Growth (YOY)

Revenue

$159.269 million

$134.408 million

18%

Net Loss

($11.669 million)

($9.158 million)

N/A

Net loss per share

($0.12)

($0.10)

N/A

What happened with LifeLock this quarter?
Total revenue increased 18% year over year to $159.3 million, with consumer revenue rising 19% to $151.9 million and enterprise revenue growing 18% to $7.3 million.

Helping to drive consumer revenue higher was an 11% rise in members, which ended the first quarter at 4.3 million. The 345,000 gross new members added in Q1 made it the 44th consecutive quarter of sequential growth in cumulative ending members.

However, while monthly average revenue per member increased to $11.90 from $11.38 in the first quarter of 2015, that figure was down sequentially from $11.97 in the fourth quarter. LifeLock's customer retention rate also worsened, declining to 85.8% from 87.8% in the year-ago quarter.

In addition, Lifelock's total costs and expenses increased 21% -- outpacing revenue growth -- as the company continues to...


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