NortonLifeLock Inc, a global leader in consumer Cyber Safety, received provisional approval from the U.K. Competition and Markets Authority (“CMA”) for its acquisition of Avast plc. NortonLifeLock also released its results for the fiscal year 2023 first quarter, which ended July 1, 2022.
“We are excited to start the process of bringing our two companies together now that the CMA has approved our merger with Avast,” said Vincent Pilette, CEO of NortonLifeLock. “With this key milestone behind us, we are looking forward to driving innovation and taking Cyber Safety to the next level.”
The merger is anticipated to close between mid-September to early-October. The timing is subject to change and is dependent upon the final CMA approval, mutually agreed upon operational considerations and customary closing requirements such as the U.K. court approval of the scheme.
Also Read: Alteryx Appoints Doniel Sutton as Chief People Officer
Q1 Financial Highlights and Commentary YoY
Q1 GAAP revenue was $707 million, up 3% in USD. Q1 GAAP diluted EPS from continuing operations was $0.33, up 6%. Q1 operating cash flow was $215 million, down 17%.
Q1 Non-GAAP YoY
- Revenue of $708 million, up 2% in USD and 6% in CC
- Diluted EPS of $0.45, up 7%
- Bookings of $663 million, up 1% in USD and 5% in CC
- Operating margin was 53.7%, up 250 bps
- Direct customer count of 23.3 million, up 0.2 million
“Q1 was another quarter of solid execution by our team, and in the face of macroeconomic headwinds, we delivered our 12th consecutive quarter of bookings growth,” said Natalie Derse, CFO of NortonLifeLock. “Now with the Avast acquisition provisionally approved, we look forward to bringing our operational discipline to the integration planning and quickly setting the foundation of the company for growth.”
Fiscal 2023 Q2 Guidance
- Non-GAAP Revenue expected to be in the range of $695 million to $705 million, translating to mid-single-digit growth YoY in constant currency, including 4+ points or approximately $30 million of FX headwind
- Non-GAAP EPS expected to be in the range of $0.44 to $0.46, including $0.03 FX headwind YoY
Quarterly Cash Dividend
NortonLifeLock’s Board of Directors has declared a quarterly cash dividend of $0.125 per common share to be paid on September 14, 2022, to all shareholders of record as of the close of business on August 22, 2022.