Q1 2025 Gen Digital Inc Earnings Call Transcript
Key Points
- Gen Digital Inc (GEN) reported a 4% year-over-year growth in cyber safety bookings in constant currency.
- The company achieved a record direct customer count of 39.3 million, up 1.1 million year-over-year.
- Retention rates reached 78%, supported by record levels in LifeLock.
- Earnings per share grew by 15% year-over-year in constant currency, reaching $0.53.
- The company launched Norton Ultra VPN, offering comprehensive online protection and built on the new Gen stack.
- Legacy business lines continue to decline, contributing only $14 million this quarter, down from $17 million the prior year.
- The company faces ongoing FX headwinds, particularly from the depreciating Japanese yen.
- Gross margin has shown slight variability, down 100 basis points year-over-year.
- Despite strong customer acquisition, the company acknowledges that achieving further retention improvements may become more challenging.
- The company remains highly leveraged with a net leverage ratio of 3.5 times EBITDA.
Please stand by for streaming text.
Mohammed moving to fish. Thanks. Thanks. Good afternoon, everyone, and thank you for standing by. My name is Tamara and I will be your conference operator today.
Call is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session at this time for opening remarks, I'd like to pass the call over to Jason Starr, Head of Investor Relations.
Thank you to be a good afternoon. Welcome to Genta's first quarter of fiscal year 2025 earnings call. Joining me today are Vincent Pilette, CEO, and Natalie Derse, the CFO of. As a reminder, there will be a replay of this call posted on the Investor Relations website along with our slides and press release.
I'd like to remind everyone that during this call, all references as to the financial metrics are non-GAAP and all growth rates are year-over-year unless otherwise stated.
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