Gen Digital Inc. (GEN) Earnings Call Transcript & Summary

Hi. I'm Mary Lai, Head of Investor Relations at NortonLifeLock. I'm glad you can join our virtual event. In fact, this is our first Investor Day. With the world changing so fast and with all of us juggling so many priorities, we wanted to offer you a flexible option, which is why we're excited about this new on-demand format. We have a great event planned for you. By now, you should have seen a copy of our press release and have access to all the presentation videos we posted on the IR website. We are showcasing our strategy to transform the company for growth. We have 6 speakers who will highlight and cover their areas of expertise and why they're excited about opportunity ahead. Before you tune in for our leadership team, we will first hear from our Chairman, Frank Dangeard. He will share a few words on behalf of our Board. At your own pace, as you digest through the content of this event, you may have questions. And that's why we're holding a live Q&A session tomorrow, May 11, at 9:00 a.m. Pacific time. Now let me wrap up with some housekeeping items. Please take a moment to review this slide shown here. We will be making a number of forward-looking statements as you watch our on-demand videos. We also do not undertake an obligation to update any forward-looking statements. Additional information concerning these and other risk factors are contained in the Risk Factors section of our most recent report on Form 10-K and Form 10-Q filed with the SEC. Lastly, we hope you enjoy this event and walk away with a better understanding of our company and get as excited as we are about the opportunity. I personally look forward to catching with many of you after the event. Thank you for tuning in.

Hello, everyone. I'm Frank Dangeard, Chairman of NortonLifeLock. Thank you for being with us today for this Investor Day. First, I would like to thank the leadership and the 3,000 employees in NortonLifeLock. The team came together to stand the company up, to deliver on commitments, and to define a consumer-led strategy in a really difficult year. The pandemic has had a dramatic impact on people's lives and on economies around the world. But it has confirmed something that we all knew to be true. Each and every one of us has a need for cybersafety, and NortonLifeLock, as the leader in the industry, has a responsibility to bring cybersafety to everyone. There is no question that in an increasingly digital and connected world, more and more activities are going online. Unfortunately, there is also no question that the risks and threats to our digital lives are increasing tremendously. And NortonLifeLock has a unique opportunity to scale up cybersafety to redefine the meaning of digital life protection and bring cybersafety to every consumer across the world. I'm fortunate to lead the Board, and I would like to take a moment to tell you who we are and what we think. We all have diverse backgrounds and expertise, but we have all worked in or with the technology sector, and of course, that includes cybersecurity. We all strongly believe in the company's mission to protect and empower people to live their digital lives safely. You will hear a lot today about how this mission translates into our strategy to build out the most comprehensive cybersafety platform, supporting and delivering trust-based digital services. In our view, the team has all the ingredients to deliver this strategy and accelerate growth. And that includes best-in-class products and technologies, a keen focus and interest in consumer experience, trusted brands, diversified distribution channels and excellent capabilities. All of these will be described to you in more detail in the sessions. The Board's commitment to this mission and this strategy is matched by our confidence in the leadership team. They have returned the company to growth and have demonstrated excellent operational capabilities by meeting and exceeding operational and financial targets. Therefore, we believe NortonLifeLock has the team, the capabilities and the strategy to succeed and to transform for growth. Add to this, our growth-oriented capital allocation strategy with the company's commitment to return 100% to free cash flow, excluding acquisitions to shareholders. In short, the Board firmly believes that the company is on the right path to significantly enhance value for all stakeholders. Thank you again for being with us today.

Thank you for tuning in. I hope you're staying healthy and safe. I'm Vincent Pilette, CEO of NortonLifeLock, and welcome to our first Investor Day. We put together a view of the overall market landscape, our company's vision and our strategy to accelerate growth. We hope you will come away from these presentations with a better understanding of the cybersafety space, the tremendous opportunity in front of us, and how we plan to achieve our full potential. Now let me start with the key takeaways from this event. First, we are a stronger cybersafety company today, 100% focused on consumers. No distraction. Every dollar we invest goes to serve our mission. We have big dreams with a start-up mentality on top of being already the industry leader. Secondly, you will see the multiple growth levers that we can capitalize on. We have the strategic playbook and the established ingredients to accelerate our growth from here. And we have the discipline and the mindset to constantly be learning and adjusting our methodologies to build a company that redefines what cybersafety means for all consumers. And finally, we have a team intensively focused on execution and creating value for all of our stakeholders. You've seen our results in the transition phase from Symantec to NortonLifeLock. We met or exceeded every commitment in creating the leader in consumer cybersafety and returning this company to growth. We have developed in a very short time a strong culture of innovation and execution. The sales of the Symantec Enterprise business, and of course, the emergence of NortonLifeLock started with a vision, the digitization of the world and the overlap between physical and digital worlds are growing rapidly. We have a vision that everyone has the right to live their digital life safely. This is our North Star. We are transforming how people think about cybersafety, how people consume it, how they benefit from it. We were the first to create an integrated consumer cybersafety platform to achieve our vision. Now with our trusted brands and our products, we protect about 80 million people and hundreds of millions of devices and digital identities all around the world. We want to give all of our customers the control and the confidence to feel safe in this complex digital world. We believe everyone must have that peace of mind when living online. After the divestiture, we had to rebuild the fundamentals, and we've come a very long way since November 2019. It was no small task to separate Symantec into 2 businesses and set NortonLifeLock for success. And I'm extremely proud of our team. We've begun to establish a track record and build credibility behind our commitments, every one of our commitments with improved productivity, with improved operational execution all across the board. And we've empowered our employees to drive with ownership and accountability across the company. And above all, we are customer-centric. We're talking to our customers. We're listening to our customers. We're driving for their success. And that has enabled to return the company to growth. But of course, our work is not complete. It actually has just begun. We have more improvements and opportunities ahead of us. The overall market landscape of cybersafety is evolving and growing. Today, the core pillars of our cybersafety platform are security, privacy and identity. The value proposition is touching multiple markets and cohorts. New functionalities, new products, new services, international expansion are some of the many ways for us to reach more customers and gain market share. And 1 thing is for sure, people want to enjoy the advantages of the digital life without compromising security, privacy or identities. And our goal here is to bring that to everyone. The various markets we touch with our platform are growing at various stages from low-single digits to double digits. In addition, this digital safety platform offers us the opportunity to move into adjacent and nascent solutions, additional value propositions for our customers like digital persona or online reputation protection, anti-bullying services, access management. Those are just a few of the many emerging opportunities for us to build the most comprehensive portfolio. Over time, cybersafety, broadly defined, will become a bigger part of the consumer's wallet. It will protect and empower their digital lives. And on top of growing markets, cybersafety is massively under-penetrated. There are about 5 billion people who are connected to the internet, leading digital lives that are expanding both in reach and in value. Now how many of them pay for independent digital protection today, 100 million people, 200 million people, certainly less than 5%. And as more of our daily activities are moving online or managed online, consumers are left unprotected or weakly protected at best. And if you think about the physical world, 90% of the people have car insurance, 80% of the adults in the U.S. have life insurance, 30% of homeowners have alarm system, yet less than 5% have a cybersafety plan. Now I can't predict the future penetration level for cybersafety, but we know that awareness will continue to increase. Products and solutions will adapt and innovate, and customer experience will improve. And we are focused on being at the forefront of each of those, and we believe we are uniquely positioned to lead the transformation of cybersafety. At NortonLifeLock, we're driven by the vision that one day everyone will be protected and empowered to live their digital life safely. There is no denying that we are all doing more and spending more time online. Consumer behavior has changed radically, and of course, even more so as a result of this past year. Consumers have seen changes to every aspect of their lives. So much of life happens online that digital life is really just life. Shopping, banking, working, now learning, streaming and socializing are all at our fingertips today. But this level of convenience to our life can also make us much more vulnerable. Unfortunately, as we all accelerate our digital lives, we are also opening new doors for cybercriminals. We've seen the emergence of 3 combined trends. Criminals have increased their threat sophistication, and they'll continue to do so. In addition to the traditional forms of malware, spamming or fishing attacks, we've seen the emergence of ransomware, cryptojacking, botnets and even voice imitation of someone you may know in order to access your personal information and assets. These techniques, along with the digitization of our lives, have increased the opportunities for cybercriminals new spaces like personal medical records, virtual currencies, or even online student scorecards have all been new targets for cybercriminals. It's no different than in the physical world. If there is something that you value online, you will need to protect it because chances are that 1 day it will be attacked. And finally, cybercrime has become a big business. On the dark web, the marketplace for cybercriminals, you can simply purchase cyber viruses, even buy them as a service. You don't need to be a software coder. And the stolen assets can easily be resold on the dark web. Stolen streaming accounts are selling for $6, credit card numbers for $40, driving licenses for $50 and even college degrees for $90 each. Overall, almost 20 billion records are circulating in these underground market. Make no mistake, these criminals are causing real damages as our digital lives merge with every element of our daily lives. And this is why we're so passionate and committed to protect and empower everyone to live their digital life safely. And that passion drives us to set big goals. We want happy customers. Improving customer experience is key in achieving our vision. We want to double our Net Promoter Score, or NPS, to world-class, well over 70. Cybersafety has to give you peace of mind. And you'll hear more from Patrick and Krista about the importance of customer experience and our brand. We want cybersafety to have the biggest reach. We want to make cybersafety mainstream. Today, 80 million people are experiencing some sort of protection from NortonLifeLock from 3 basic products to full platform access. Of those, about 50 million are paying customers, benefiting from our value proposition. We can double this number, and you'll hear more from Robert on our go-to-market strategies. You will also hear from Gagan on our product innovation strategy. It takes very little imagination to understand how we can build the best cybersafety platform and push its boundary by adding new adjacent trust-based solutions. We have a fantastic growth opportunity in front of us. Targeting to achieve double-digit topline growth and that translates to a growing and sustainable profitability profile. As a result, we expect to double our earnings per share, or EPS to roughly $3 in the next 3 to 5 years. You will see more from Natalie on our financial model and why we have the confidence to achieve our financial objectives. A cybersafety plan has to be easy to use. It has to be relatable and provide you with a peace of mind. At NortonLifeLock, we have embraced that vision and have embarked on that long journey with the launch of Norton 360 platform in 2019, along with its cybersafety health dashboard, now used by millions of consumers. To give you a sense of our focus, we've been improving the engagement at moments of truth. We've been increasing the coverage provided by the membership plan, and we are refining the level of support and services, localizing it where it makes sense and standardizing it across the experiences. Those are just a few of the key activities in our overall plan. Through the analysis of our broad customer base, we've seen the direct relationship between customer experience, Net Promoter Score and now retention rate. About 55% of our installed base today are promoters and have retention rates in the range of 85% to 90%. Through consumer insight and customer feedback, we know that we have the opportunity to turn passives and detractors into promoters, and with that, continue to improve our retention rate. This is what we're seeing today with those consumers that have adopted Norton 360. After years of focusing solely on the installed base and on the bottom line, we have returned this company into growing the number of customers. Today, we protect 80 million people and hundreds of millions of digital identities around the world. 50 million of them are customers that pay directly or indirectly for our solutions. 23 million have full direct relationship with NortonLifeLock. And this number is up 3 million versus last year, a first since 2014. But of course, we have a lot more potential customers to reach and engage with. We are #1 in the U.S., but in the next top 10 countries globally with similar Internet usage and GDP level, we've reached only half of the U.S. penetration. Today, we are laser-focused on expanding internationally with a country-by-country strategy, driving our 3 pillars of value, which are security, privacy and identity. And even in the U.S., we're not done. While we have developed a strong direct-to-customer channel, we only have 10% of our reach through partners. Employee benefits programs or B2B2C relationships, combining cybersafety with complementary offerings are few of the channels we're investing into to scale up our cybersafety platform and double our total customer count. And of our growing customer base, roughly 55% have adopted the cybersafety platform Norton 360. Of the 13 million customers or so experiencing the benefit of Norton 360, 3/4 of them are still in the lower tiers of the total value we can provide. It shows you that we have a tremendous opportunity to drive awareness and increase the value delivered to each customer. We are simplifying our membership plans. We're increasing the engagement and the utilization of the functionalities that are available, and we are refining our playbook and educating customers along their journey. While the first year cohorts or international customers come generally with a lower ARPU, we see tremendous opportunities to continue to increase the value provided and the retention of those customers through their cybersafety experiences. In this early stage of our journey, we see tremendous opportunities to drive all of those levers: NPS, retention, customer count, international penetration, partnerships, average product per customer, Norton 360 or ARPU. Our persistent and disciplined management of these levers individually or collectively will enable us to achieve our goal of profitable double-digit growth and get us closer to achieving our vision. And while we have a solid organic plan, we see acquisitions as a way to accelerate our transformation. With the divestiture of our enterprise business, which we completed 4 months ahead of plan and the acquisition of Avira being swiftly integrated, we have earned the right to use acquisitions as another lever to accelerate the pace of our transformation. When we look at acquisition targets, we look at 3 types of companies. Those that enable us to grow the customer base and reach them with our current offering. Those that allow us to expand the offering, technology or business model into the current cybersafety platform. And finally, those that help us increase the value we provide beyond cybersafety as defined today. All to support, of course, I mentioned to become the company that fully protects and empowers you to live your digital life safely. Avira, in a sense, met a few of those criteria that I just described. Avira increased our total customer base, extended our consumer reach globally, enabled us to accelerate our international growth and provided us with freemium and technology features that we intend to invest in, all while delivering 50% margin. So we have a broad vision, we have big goals. We also have the right team to achieve these big goals, an experienced and consumer-focused leadership bench. And as you look at their backgrounds, you will see the breadth and the depth of the leadership team. Together, we bring decades of consumer experience and know-how. And with experiences in higher growth company, of course, none of us are satisfied with mid-single-digit growth considering the potential we face. Our people leadership extends beyond this list. Our employees are passionate and hungry to realize our vision and are driving impactful changes throughout all layers of the company. And our success comes from working together with shared value and the passion for making the digital world a safer place. Our culture in a sense is becoming a competitive advantage. To deliver on our vision, we have our key capabilities that we're constantly refining to adjust to the market opportunities. We made them fit better together to build an integrated cybersafety platform. Consumer insights feed constant improvements, and customer experience is supported by the largest and strongest service organization in consumer cybersafety. We are increasing our investment to create a single and consistent experience across all of our products, localizing where it makes sense. We have a vast portfolio, developed by over 1,000 engineers with leading technologies. From standalone products to comprehensive plans, we look to protect everyone with innovative and easy-to-use products. We are focused on accelerating the pace of our new releases, whether they are new features, new products or platform upgrades. We also have a hero brand, Norton, that inspires trust globally. We're doubling down into our hero brand to reach out to new cohorts and expand internationally. And we have other well-recognized brands such as LifeLock and Avira that are use case specific. Actually, our ability to manage multiple brands allows us to differentiate where it matters. Our global reach is diverse from strategic alliances to direct relationships. We are accelerating our go-to-market investments. After increasing our marketing spend, we're now focused on increasing our operations into key international markets, going direct to consumers and through partners. And then the glue that brings these capabilities together is our relentless focus on execution. We operate with discipline, we capture productivity gains, and we prioritize our investments. We also use capital to accelerate our transformation with acquisitions. As you've recently seen with the Avira acquisition, overall, we use every lever in a disciplined fashion to sustainably meet our commitments and in pursuit of our vision. It is a very exciting vision that this company has embarked on. It's actually a privilege for me to lead it. And while we have already accomplished a lot since we launched NortonLifeLock over a year ago, we are just getting started. We've embarked on our mission to build the most comprehensive cybersafety platform and expand it with trust-based digital solutions. In short, our future is very bright. Now throughout the event, you will hear from Gagan, Patrick, Krista, Robert and Natalie. They will reinforce the levers in our strategic playbook and how they are transforming their respective areas. Thank you for your interest and supporting NortonLifeLock. Stay safe and healthy.

Hi. I'm Gagan Singh, Chief Product Officer at NortonLifeLock. It was about 30 years ago when I held my first Norton Utilities disk, and it left quite an impression on me as I marveled over what this little piece of code could do with Microsoft DOS. I've always held this reverence for Norton as a company and its products, and I'm thrilled to be one of the custodians of our product's legacy. We're excited to share with you some of the cool things we are doing and where we see our future and share with you a bit about the future of our products. Just look at a day in the life of our customers, whether they're sending messages to their loved ones, sitting in a cafe on insecure Wi-Fi, engaging in mobile banking activities, checking out various storefronts online or consuming media. Each of these actions taken on a number of different platforms creates a vector that bad guys can take advantage of. We are in the business of protecting and defending these customers against all manners of threats they face. Now the way we classify these threats is into 3 different categories. On 1 hand, we have our security portfolio. That's what we've understood for a very long time. We've evolved our product set over the last many years. And on the other hand, are threats to your identity and all the risks that come along with it and how we defend you against threats on that front. Throughout each of these extremes is the layer of privacy that's imbued into each and every one of our products. There's the adage that you can have security without privacy, but you cannot protect your privacy without security. We care about all. If you look in each of these categories we have a rich set of offerings that cover the entire spectrum. We probably have one of the most comprehensive set of cybersafety products that protect our customers' lives. It doesn't matter what device they're on, going all the way to actually protecting and defending their identity. While we may not have as much in our privacy bucket, we intend to build that out throughout this year. Many of these products are award-winning and backed by over 1,000-plus patents and a rich set of intellectual property. And we continue to win more awards for each of these products. Let's spend some time on security. We all understand the endpoint as it stands with us and our competitors. We're probably one of the best, if not the best in consumer security. If you look at where security goes from here, as we have more and more connected devices inside our homes that don't allow endpoints, they're all connected to our routers. So gateway becomes a new protection point for intercepting bad activities. And then over time, as a lot of these connected devices move outside our homes, we will have an offering in the edge, and I'll speak to that in a few minutes. Our endpoint security is award-winning across all 4 platforms used by most of our customers. We have layers and layers of protection built in. You'd be hard-pressed to find someone who has not heard of Norton Security and our endpoint products. So I'll skip this slide, except to say that these products are truly remarkable in their own right and continue to evolve with the times. But as we get into connected homes and as we get more of these devices that connect into our homes, having coverage of that gateway point is quite important. Norton launched a product called Norton Core, which is probably a bit too early for its time. But we learned a lot from the Norton Core launch and have been applying those learnings to our next attempt in the space. We're going to launch our next generation of gateway protection in the coming months. Look out for a new announcement from us because security ought to be comprehensive and it ought to be wherever our customers are facing those threats. If those threats exist in that vector, we're going to have a solution to cover for it. With the acquisition of Avira, we also have Avira SafeThings platform, along with the partnership that they launched with TP-Link, which is one of the largest router manufacturers in the world. We have additional learnings that we will bring to bear in our new offering. Look out for our gateway solution coming in the next few months. Another big evolution of security is going to be roll out of 5G, where a number of these connected devices, whether it's connected automobiles, it's our watches, whether it's our headphones, any number of wearables that are going to be perpetually connected to the network through 5G infrastructure. That poses a whole new level of risk and a shift in user behavior as connectivity becomes ubiquitous. I also believe that 5G is going to give telcos a once in a generation opportunity to disintermediate the app stores. It's going to offer a truly frictionless consumer experience. You don't have to download an app. Each of the services are enabled with a quick change from your telco provider. Value-added services like security parental controls can be provided as your data flows from the provider to your devices. We have been working on developing the capability in the edge for a number of years, and we're excited to have that in the market very shortly as well. Let me say a bit about identity. We were one of the first identity protection providers when LifeLock was founded in mid-2000s. The company has always provided a full cycle of coverage while preventing your identity from being stolen, monitoring your credit, detecting anomalies in your credit behavior. And finally, if all of those did not work, helping you restore any losses that you faced. It doesn't matter whether it was your social security number that was compromised or your home address, whether it was your social network identifiers or your health passwords, we cover the entire gamut. Ever since the acquisition of LifeLock, we've continued to evolve the product to make it relevant to new audiences. For instance, social media monitoring is a new feature that appeals to our younger customers who deeply care about their social media reputation. We've also applied a number of machine learning algorithms to start detecting unusual transactions. These recurring charge alerts are interesting because not only do they alert you to anomalous charges, but they also alert you when a vendor starts charging you a different amount than perhaps they have in the past. Obviously, password protection is important. Mobile phone monitoring is where if someone is trying to port your number, we send you an alert. So we have a number of these innovations that have allowed us to keep consumers cybersafe and stay ahead of our competition. Now one of the most understated assets that NortonLifeLock has that most of our competitors do not is that we chose to invest in developing our own e-commerce capabilities about 6 or 7 years ago. The main idea behind having our own e-commerce platform, which, by the way, speaks to integrating with third-party merchants, having our own checkout flows, having our own content management system that's integrated into best-in-breed from reputable vendors. But the main impact of the decision was not just in lower transaction costs, which I do think we have or just in improving customer satisfaction and better attrition. It has a fundamental effect on how quickly we can respond to changing dynamics in the market and launch and test more capabilities, bring them to market a whole lot faster. This is something that we've never spoken about publicly. It's not something that we normally discuss, but I thought it would be worthwhile for you to get a sense of some of the capabilities that are in the support layer that enable us to do a number of interesting things. And not only be able to do them, but do them a whole lot faster than anyone else can. This also ties into the comment you heard Vincent make earlier about developing operational excellence within the company. I'll repeat that theme as we go through further. Now all of this comes together with Norton 360. We were once again pioneers in creating a membership model where we -- when we launched Norton 360 a couple of years ago. As consumer behavior evolves and as their needs evolve, it becomes increasingly difficult for consumers to make choices over which of the threat vectors they want covered and through which products. What Norton 360 does is bring it all together in a very simple and elegant user interface to offer that same quality of protection that consumers need. We take the complication and guesswork away from customers and provide them with an easy-to-use offering that is comprehensive and covers against all manners of threats. While the digital world is increasingly more complex, being cybersafe doesn't have to be. This integrated platform means that the capabilities protecting devices, connections and identities, all live together in 1 solution. Bought as a single product, downloaded in a single app to manage all protections at the touch of a finger and supported by a global team of professionals. We think it's a wonderful offering. And so do our customers as reflected in our retention metrics. Now we were the first ones to the market. And when we look ahead into the future, being first has a lot of advantages. While you may have seen some of our competitors starting to follow similar membership models, the advantage we have is about a year or two's worth of learning ahead of them. And so as we evolve our portfolio, you will start seeing a shift in how we bundle these offerings, how we sell them, and finally, how we speak about them to our customers. Because there's a number of insights that you can only arrive at if you've actually been doing the same thing for some period of time. Moving forward, you will see us develop even more thoughtful packaging of our offerings into simpler membership plans and point products serving customers who want more control. This allows us to make customer choice simpler, drive up satisfaction and also open the top of the funnel to acquire more customers on a handful of individual point products. Both of these desirable outcomes are in the service of the goals that Vincent laid out, driving higher NPS and getting more customers. So we are very excited about applying our learnings to these new offerings that are on the way. Some of those enhancements are already in the works, and you'll see them coming out in the near future. And finally, I couldn't be more excited to have Avira joining us just at the right time. It brings a complementary customer cohort in Europe. As you know, we are concentrated more in the U.S., and Avira has a majority of its presence in Europe. We get access to the freemium model, which also helps us advance one of our key goals that Vincent laid out about doubling our customer count. And the acquisition also brings a set of core capabilities that will only strengthen and enrich our portfolio. Whether it is the core endpoint engine, whether it's their utilities program, whether it is the BullGuard gaming accelerator. I'm particularly excited about the gaming addition as they will meaningfully enhance our Norton gaming product. By making games run faster with the Norton AV running than if there were no AV at all. It's quite a clever and magical feat. Now again, our emphasis remains on speed of execution. Our platform enables us to bring on more and more of these partners as we acquire them and be able to integrate them quickly and bring the best set of collective capabilities back to our customers. And in fact, our first integrated product with Avira is already scheduled for launch in June of this year. While this slide speaks to a number of major releases over the last many years, the bigger point here is really our accelerated pace of innovation. It's less about expecting any one of these launches to become a meaningful contributor of revenue while we do care about that, but more about trying out new things. We want to test new ideas at a faster pace, double down on what's working and learning from and discarding quickly what we think isn't working. And we think it gives us a much better chance of success in the long run. It's about being nimble, showcasing our ability to move faster and being better as a result. This also ties into Vincent's theme of operational excellence. Where we move fast, we also want to be conscientious and disciplined about the bets we make in our future, and we're just getting started. Further to the rapid innovation theme, here's an example of a couple of products we iterated on and also developed recently. Our VPN product has been around for some time, and we didn't have the most desirable attributes worthy of our brand. Just since June of last year, we've had over 12 releases. Over that time, we've seen a 90% improvement in throughput, 60% improvement in connectivity, twice the stability, and app ratings are up. And again, it speaks to the commitment that the team has brought to bear about establishing product leadership in each of the categories we play in. I'm happy to say in an independent third-party test, we scored #1 against 10 of our very best known VPN competitors against 8 different qualifiers. Not only that, we're also bringing new ideas to the market a lot faster. So look at our Privacy Monitor Assistant product. It went from a pilot to launch in just under 3 months. In fact, when we launched the pilot, it nearly broke our record for one of the most successful launches we've had measuring an inbound customer interest. We had to pause the pilot to go build the actual product because it was quite evident at the end of the first week that it was going to be a success. So again, to give you a sense of the momentum that is building, and I couldn't be more proud of the teams that are enabling us to improve the quality of our existing products and to launch new products and do it all with a much, much, much more rapid cadence. So just to sum it up quickly. Obviously, we've had a privileged position as being a leader in the industry and providing cybersafety solutions to our customers. We take that position with a sense of humility and tremendous responsibility and continue to still feel that we're just getting started. Our innovation is accelerating. Our improvements to our existing products, launching new products, all accelerating at a rapid pace. Ultimately, it's all about bringing a simple, elegant solution to our customers and giving them the peace of mind that comes from a reputable brand that comes from a position of trust and building that long-term relationship with those customers by providing simpler products, by providing better products, by educating them about the need of those products and continuing the service of our big goals that you heard Vincent talk about. It was a pleasure speaking with you today. I hope to hear some questions when we get together again, and thank you for your time.

Hi. My name is Patrick Schwind, and I head up Customer Experience here at NortonLifeLock. My mission is really simple, create the best experience possible for our customers. I'm going to spend a few minutes detailing how we're doing that and where we're going. In my career, this is the most excited I've ever been to be able to marry together the company growth initiatives and the execution of world-class customer experience. We're still in the early stages of our transformational journey, but we've made some incredible progress. Let's start out by playing a quick video from our customers and see what they have to say about NortonLifeLock. [Presentation]

We are driven by customer feedback and insights. I get the pleasure of speaking to our customers every day and hearing from them firsthand. Cybersafety customers are educated and are looking for a company that will protect their information and fix their issues. The global awards that we have won in the past 12 months clearly demonstrate that we have the right service and right experience for our customers. As you could see on the slide, yes, we check all the boxes. We are award-winning with global reach, and we handle support activities at scale. What that means is we're able to support the large volume of requests as well as the ability to provide the technical expertise and knowledge. In fact, NortonLifeLock has the largest consumer cybersafety services department in the industry. We deal with millions of customers every single month. Not only are we there to solve their issues and answer their questions, a lot of these interactions are driven by our proactive communications to our customers to help our customers avoid problems and stay cybersafe. In each case, the experience we deliver reinforces the value proposition of our membership. Our customers expect to be able to contact us 24/7 and for us to be able to resolve their issues. Great customer experience is all about controlling and improving that journey. We spent most of our focus over the past year on unification of our agent knowledge and creating a seamless experience for our customers. You will never have great customer experience if you look at customer service as an expense line item or if you transfer your loyal customers to third-party companies to resolve their issues, who you didn't train and manage. It's really important for us to own the journey from the start to the finish. Our services team has 1 main goal. We want to be the trusted security adviser for our customers and create effortless experiences. We draw strength from leveraging all of our data and put our learnings quickly into our process. Making customers happy is not just about giving them what they ask for, it's about educating them on cybersafety and walking them down this journey. Let me give you an example of Mr. Bronski. He purchased identity theft protection plan because he saw a TV commercial, and he felt his personal identifiable information may be at risk. As he was setting up the product, he spoke to one of our team members. What they found out was that he was recently promoted at work, and he was going to start traveling more. Although Mr. Bronski was smart enough to understand that he could be more vulnerable to an identity attack, he didn't really understand the specific actions and behaviors that could create that risk. So during the call, our team members asked him, how are you protecting your tablet? Are you going to use public Wi-Fi? How are you going to remember all these passwords? Mr. Bronski originally came to us thinking he just needed identity theft protection. But now he is on our premier cybersafety plan, all because we educated him on his journey to live a safer digital life. This is the expectation I have for great customer experience; listen, empathize, educate, but most importantly, provide a solution. We start by being the trusted leader in cybersafety, but to truly deliver exceptional customer experiences, you have to back it up. You have to have products that people want, people that care and processes that evolve. When a customer has their identity stolen, receives ransomware or malware, or simply needs help connecting that brand-new router, they trust the service will handle it quickly and with empathy. Great customer experience is empowering our team of frontline workers with all the tools and knowledge necessary to solve the problem. One of our key metrics is a single contact resolution. We focus on handling the issue correctly and quickly. And you could see that by our resolution percentage, which is 83%. Our restoration team members are all CITRMS certified. Our team members are highly trained, and we have a curated process with a ton of experience. As our customers interact with our team members to resolve their issues, we see our retention increase. It's important to call out a growing trend, which is fake customer support advertising on people's devices. These can look really realistic and can mislead you to click or engage. One of our long-time customers was a victim of a support scam. She called Norton. Our agent remotely logged into her machine, cleared out all the malware and viruses and even found a crypto-mining virus on her computer. This was slowing her down, and she actually thought she needed to go buy a new laptop. Her laptop is now running like new and all it took was a single phone call 24/7. She didn't have to submit a ticket or run software. She simply received the help she needed. And as a result, she is a happy customer. Being there for our customers means listening. Over the past year, we've centralized all the voice of the customer and all the voice of the employee listening posts into a single actionable repository. Our customers can tell us how they feel on the web, using the product, interacting with services or through emails. It's added to our employee feedback as well. As a consumer-focused company, our employees can be some of our best critics. We're able to see trends in real time, get a immediate product feedback on launches and find opportunities that other companies are going to miss. By owning the journey from start to finish, we get feedback throughout the entire experience. This allows us to resolve issues faster, which creates happier customers, but also lowers our costs. We have several success stories in the past year in how we leverage this data to make our customers happy and grow the service. From customers in Japan needing extra care to individuals calling into Norton looking for tech support, Privacy Monitor Assistant is a combination of our product road map and a white-glove service. We saw a huge opportunity to combat personal identifiable information data aggregators and our customers' desire to have someone else just do the work for them to scrub PI off the web. They wanted that service touch. Listening to customers guides our business and marketing decisions. Let's talk a little bit about Net Promoter Score, NPS, and why it's important to us. NPS has been widely adopted by companies around the globe to measure customer loyalty, and it's been shown to correlate with revenue growth as well. Our goal is to deliver world-class services. Our road map to get there is simple and proven. Our new customers that come in already view us favorably with an above industry score in the high 30s. As we layer in new solutions that customers want, teach them how to be more protected and they build up that peace of mind, their score goes up, our retention goes up, our average revenue per user goes up, and most importantly, our customers are happier. We now have a path to deliver world-class loyalty, which is defined as a Net Promoter Score of 70 or greater. Thank you for spending some time today to listen about customer experience. As I wrap up, I want to leave you with 5 points and why our services is different and what you should expect from a cybersafety company. One, we're a consumer-focused company that puts customers first. We listen to act. Customer feedback is our guiding principle throughout. Two, we're the trusted brand in cybersafety. Our customers can get all their cybersafety needs handled by NortonLifeLock. We created a customer journey that deals with all experiences internally. You have a security issue, identity issue or a privacy issue, we own that journey from end-to-end. Three, we are positioned with the latest technology to grow. We can add new products and new markets very quickly, utilize the same model we have and just expand our capabilities. Four, we are award-winning and it's part of our culture. It's not just about doing the job, it's about making a difference in the lives of our customers and our employees. Five, we are the pioneers in cybersafety. Because services has had a hand in the entire journey map, if there's an issue, we've seen it. We have a process for it. We know how to fix it, and we improve the experience for all of our other customers. A problem we discover in pull in can become an immediate solution in Japan in just minutes. Lastly, we create happy customers with a peace of mind that they trust. Thank you for your time today. I look forward to taking any questions you may have.

Hi, everyone, I'm Krista Todd. I'm the Chief Marketing Officer at NortonLifeLock. Today, I'll spend a few minutes sharing my perspective on the power of brand and how we plan to leverage the strength of our brands to continue to drive growth. We start with our company vision, which is to protect and empower people to live their digital lives safely. Consumers spend more than 7 hours a day online, and typically, they're always within just 3 feet of their phones. In fact, 65% of people say the number of hours a day they're online has increased over the past year. We are all socializing, working, shopping, learning, playing, streaming and banking online today. We know that the more connected we all become the more we all need to be aware of the trade-offs we are making that could potentially make us a bit unsafe online. We recently released our Annual Norton Cybersafety Insights report. And we see online threats only continue to increase. In the past year, nearly 330 million people across 10 countries were victims of cybercrime. And finding solutions is not easy. Cybercrime victims collectively spent nearly 2.7 billion hours trying to resolve their issues. In the U.S. alone, over $38 billion was lost to cybercrime during the same time period. That is an increase of nearly $10 billion over the previous year. And the bigger the problems, the more NortonLifeLock needs to be there to protect people. We have a responsibility to keep people's identity, personal information and devices safe in the digital world. So let's go to the Power of Brand. It starts with awareness. Do people know who we are. We are so incredibly lucky because consumers do know who we are. In fact, Norton has 89% global brand awareness, but the question remains open, do people know exactly what we do. So to find out that piece of the puzzle, we recently connected with consumers to ask them what they think about the category. What we found is that they recognize Norton as the #1 brand in device security and the #1 brand in consumer cybersafety. This is incredibly promising. I would assume we'd be #1 in device security since we've been in this business for decades, but we are also known for providing full comprehensive cybersafety solution. We were the pioneer in cybersafety ahead of the other players, and we are continuing to be the leader today. We have a huge opportunity to build a brand that represents and stands for trust. In this uncertain digital and physical world that we live in today, it is so important to create trusted brands. Consumers are more likely to choose us and stay loyal and even become advocates for our brand as long as we build trust. Norton has 63% brand trust in United States. That is a very good strong foundation, and we are committed to keep building upon it because we're truly just getting started. Digging in further on the power of the Norton brand. As you can see in the upper right quadrant, our research shows that Norton is best positioned in brand health and brand presence. Brand health is a combination of unaided awareness and brand impression. Brand presence is that consumers hear or see us often. They can recall our marketing, our advertising and our messaging. We are the global category leader in both brand health and presence. And we're also well positioned globally. The Norton brand is #1 or #2 in all of our key international markets today. In Germany, Norton is #3, but Avira holds that #1 spot, and Avira is now part of NortonLifeLock. With international expansion as a company priority, I'm confident we'll keep building our brands in these markets, as we continue to bring protection and empowerment to the people in the digital world. The opportunity to grow our brand internationally is big. Our momentum continues when it comes to reaching new audiences. Whether that's families, gamers or millennials on mobile devices, we're building products and brands that can connect with these consumers. When we ask consumers, where can we take our brand Norton as it relates to new categories or market adjacencies, the response was overwhelmingly positive, especially in the millennial age group. There is a strong belief that our Norton brand can easily stretch to new categories and continue to be the #1 trusted brand in cybersafety. Norton has strong awareness of global presence. It's a trusted brand and has the ability to reach new audiences. For all of these reasons, I'm so excited to be part of our transformation for growth. Our Norton brand is just getting started. Even with it being recognized and trusted for decades, we're able to accelerate brand momentum forward with Norton. This brand allows a sense of optimism, an easy way to see the light in what can otherwise be a pretty dark problem. But that's not all. We have strong brands and product platforms that will continue to help us grow. To reach new customers, we will go to market with our brands in differentiated and unique way. For example, we recently acquired Avira, a freemium brand with strong awareness in key European markets, specifically Germany. It holds that #1 position in brand awareness in Germany today. And LifeLock is the #1 identity theft protection product in the United States, and it has been #1 for years. We'll continue to leverage our trusted brands and product platforms to deliver cybersafety to millions more consumers worldwide. The other aspect of building our brand is developing memorable and meaningful creative that connects with people, and it must start with real consumer insight. Here is one of our latest, today, we shop, socialize, play, stream and learn online. Our digital life and our physical world are 1 and the same. But the digital world can come with trade-offs. To get access to what we want online, we sometimes need to give up our privacy or personal information, which can make us all a little bit more vulnerable to cybercriminals. In fact, 2/3 of adults admit to accepting risks online for convenience. With Norton 360, with LifeLock, we don't need to make any more trade-offs. The campaign uses a bit of humor to hold a mirror to this cultural truth and gets people to recognize we are all constantly on the edge of unsafe. Our ambition is to encourage everyone to opt in to cybersafety. As a result of this cultural truth, we developed this new creative marketing campaign. You'll find it today across offline to online media, traditional television to over-the-top television, in social media and digital media and many more places to come. Let me show you the 60-second version now. [Presentation]

No matter how many times I watch that I smile knowing how relevant and relatable these scenarios are today. In closing, we will use the Power of Brand as a key differentiator in our transformation for growth. Stay tuned because we are definitely just getting started. Thank you.

Hi. I'm Robert Clarkson, Chief Commercial Officer for NortonLifeLock, and I'm excited to talk to you today about the tremendous growth opportunity in front of us and how the go-to-market team plans to capitalize on it by bringing cybersafety to everyone. Today, there are about 5 billion Internet users and billions more connected devices. The opportunity is significant. However, executing on that opportunity is where the business is built. The first thing we've come to understand is the alarmingly low penetration isn't about consumer need for cybersafety, but more about consumer awareness. Consumers hear about the latest breach or hack, but they often don't have a clear understanding of how their digital lives make them vulnerable to cyber and privacy threats. There is a significant gap between what customers know to protect themselves from and what they actually need to be safe in today's digital world. There are nearly 50 billion connected devices around the world, and that number is expected to grow significantly. And while the number of connected devices is increasing daily, so are the number of threats and their level of sophistication. This presents a very large and expanding opportunity for us. While the world is gaining awareness with every event and news cycle, our team is ready when customers' digital identity or assets are compromised. Many consumers have some level of protection on a work computer, but most are much more exposed on personal devices or when traveling. Recently, we are seeing enormous increase in tax scams, using stolen personal information to file for a refund. In most cases, the victim doesn't know the filing until their legitimate tax return is rejected. We see similar increases in so-called evil twin or fake Wi-Fi networks, where someone sets up a free airport or Starbucks Wi-Fi and steals any data transmitted like credit card numbers, passwords and home address. Increasing awareness is the first step, realizing that potential is where we differentiate NortonLifeLock. If we do nothing else, increase awareness, ensuring consumers understand how to be cybersafe in today's world is a worthy goal. Looking from a consumer's perspective, we are working to clearly articulate the value proposition of cybersafety, including prevention, detection and restoration. In some cases, we have a customer who doesn't use all the elements that our memberships provide. And while we still want to protect them, we want them to be as safe as possible. So we've been hard at work to bring our clear messaging on our products, solutions and brand, combined with seamless onboarding, enabling our customers to enroll in our protection services far faster and easier. This engagement and protection of our customers strengthens our long-term relationship with them. Engagement means more satisfied and loyal customers. It gives us the opportunity to help consumers ensure that they are fully protected against all types of cyber threats. That utilization starts with our communication, including in-app, in-product, in-context messaging and other experiences by our users in our products and our applications. We often see that our customers have primary devices covered, but secondary devices like an iPad or Nest networks are left exposed. We have technologies in place that can identify these additional systems or devices and then can provide them with appropriate solutions. By providing best-in-class products as well as continuing to provide new relevant solutions to meet customer needs, our members will be both happy and engaged, but more importantly, they will be protected. Our customers continue to trust us, our brand and our products to give them peace of mind, as they navigate the digital world. However, capturing the potential starts with effective outreach. As you know, we've invested at a run rate of approximately $300 million across our direct paid marketing channels. It is critically important that we leverage this investment with the brand strength provided by Krista's team to enable effective customer enrollment. To facilitate this, we are transitioning away from traditional linear channels to more digitally agile forms. These traditional tools include long format TV, 30-second TV spots, radio and direct mail. Our more dynamic forums include multiple digital and social platforms, demographically diverse affiliates, country-specific messaging, mobile-optimized experiences and greater optimization in search. You can see that this transition is already well underway as our marketing mix has changed significantly from our pre-unlock days. These new forms provide several advantages. They are much more measurable and much more customizable in their messaging. Through real-time analysis and fast-test agility, we will continue to manage our marketing spend while we increase both performance and efficiency. Ultimately, the transition of new digital forms allows us to attribute and allocate better, reach new audiences and cohorts and connect more meaningfully with our customers. Ultimately, members enter our ecosystem in one of two ways. One, they purchase individual products to meet a specific need. These feature buyers are looking to address a specific need in either security, privacy or identity. Or two, they can enroll in one of our comprehensive membership plans. These plans provide industry-leading features for those who want extensive protection and peace of mind. Regardless of the initial product enrollment, it is our objective to continuously educate our members and work with them to provide the most comprehensive protection. We have many avenues and methods to reach new customers, and these channels provide us with both global reach and expanded demographic appeal. Our strategy is to meet the customer where they prefer to engage and with the value proposition they understand. We have several robust routes to market. First, we have a data-driven direct acquisition team to identify, educate and onboard customers who prefer to buy from us directly. We also have many global distribution partners and multinational partnership channels. For example, we are the preferred partner for many of the largest retailers and e-tailers throughout America, Europe and Asia Pacific. We also engage with consumers through national and global service providers, such as telecommunication companies to extend our reach and provide our B2B2C partners with value-added services to enhance their offerings. The recent acquisition of Avira provides a new route to market and a new customer base from which to grow our direct member count as well as a freemium model to leverage in many new countries. No one in our industry can match our breadth and scale of our routes to market. And although we have several pathways in place, we are continuously seeking new channels and new distribution models to reach the widest global audience in the most relevant manner. A priority for us is to continue our international expansion by bringing new services to new consumers in new countries. We will provide new products and services to over 10 additional countries in the next 12 months. As it stands today, we have a 60-40 domestic to international customer mix. Avira increases the international mix, but we are doing more. As part of our goal to expand our reach, we have an opportunity to get to 50-50 customer mix. A small subset of initiatives for this year include: expanding identity theft protection outside the U.S.; broadening the Avira freemium model to accelerate our international growth; and introducing significant strategic international partnerships for expansion and leveraging their strong regional presence and local expertise. Additionally, with the help of e-store improvements and our expanded international product portfolio, we have a greater opportunity to provide increased value to our customers and drive higher lifetime value. We believe an engaged customer is a happy customer. However, the acquisition of customers is just the first step of the journey. We are tailoring our onboarding and product messaging to reflect their specific product and service purchase, making the enrollment process much more intuitive and meaningful. We seek to ensure that the customer is knowledgeable and engaged and is using optimal products and features to provide comprehensive protection. We continuously monitor customer needs based on their behaviors enabling us to provide them with either additional products and services or more comprehensive plans to meet their changing needs. An example of this would be VPN for a frequent traveler or family plan for growing families. With ever-changing tech landscape, we want to ensure that our customers know that we are protecting them both now and in the future. After all, this is a partnership, not a product. In addition, our responsive model will only add to the strength of our industry-leading customer loyalty. And as you know, we have best-in-class retention rates. However, we are not satisfied. Retention is just the baseline, growth is the goal. Even at 85%, we have the opportunity to improve. And more specifically, we're focusing our efforts on our first year cohort. Currently, our first year retention is about 10 points lower than our overall retention rate and that difference represents a significant opportunity as we move forward. We have several initiatives in place to ensure that these customers remain protected, such as frictionless customer onboarding and increased feature engagement. We are also rolling out more interactive products and increase first year interaction. We believe these products will both increase our product penetration and our revenue per customer, providing more comprehensive protection and increasing the likelihood of them becoming lifelong members. This is how we win, widening the reach of our marketing and partnerships and developing a multifaceted relationship with our customers. Our strategy of meeting customers where they are is already paying dividends. Our direct business is increasing globally. Our partner business is growing significantly. And with Avira, we now have a robust freemium model. We are increasing engagement with our customers through trigger-based messaging, life cycle marketing and maximizing feature utilization to ensure our members are being protected. Additionally, we now provide customers with in-context alerts to increase both awareness and recommend appropriate resolution. The goal is not product placement, it is product value and utility. Here are some examples of early success we've seen. We extended our dark web monitoring product to Japan, resulting in significant growth in the last year. With the help of a strategic partner, we have just launched comprehensive identity theft protection in Canada. And a topic that is important to many, we've designed family plans to ensure expanding families had the peace of mind that all household members have the protection they need. This plan is now more relevant than ever with distant learning and home offices. We've also addressed the need for a specific customer, gamers. We built, launched and distributed Norton 360 for gamers to protect our online gaming activity. Not only does this product protect gamers and gamer to have information, but it also does so without degrading game speed. And in fact, through proprietary technology, we can increase PC and game performance beyond the original specs. Again, these are some examples of how we adapt to meet the changing needs of our global customers. And this innovation is now part of our DNA. I hope I've conveyed my enthusiasm for our increasing momentum, but we are far from satisfied. As you have seen, there's been a meaningful turnaround in our business, and we build on this momentum as we continue to grow. From the customer's point of view, when we optimize our enrollment and engagement, they become true advocates and remain in our products and services as they transition through life stages. We will protect as many individuals and families as possible by broadening our reach with additional geographies, developing new acquisition channels and appealing to new demographics. We are continuously enhancing our value to our members, reassuring them that they are protected and give them a peace of mind in an ever-changing digital world. And as I tell our team every day, this is how we make a difference, and we are just getting started. Thank you for your time today, and I look forward to taking any questions you may have.

Hello. My name is Natalie Derse, and I have the privilege of serving as the CFO of NortonLifeLock. I am thrilled to be here with you today, as we have an exciting plan about our future to share. Before we look forward, it's important to know where we've been. When we stood up NortonLifeLock as a stand-alone business and embarked on our turnaround journey, we were looking at declining customer count, anemic bookings growth and flat revenue. We knew we could do better. The leadership team took the opportunity to reset expectations, setting ambitious growth targets and profitability mile markers to help measure improvement post divestiture. In just 1 year, we've gone from low-single-digit to high-single-digit growth in bookings, exceeding our initial targets with a record 16% growth in Q4. For revenue, we have accelerated from flat growth to mid-single digits, delivering double-digit growth in Q4. And we've generated record profit, capturing leverage from accelerating topline, driving productivity gains through the sale of our enterprise business and other integration activities while reinvesting in sales, marketing and product. We grew EPS 60%. We have had the first year of direct customer count growth since 2014. We have added almost 3 million net new direct customers in the last year. We've inverted the long-term negative trend and have sustained the growing trend for several consecutive quarters now. We're growing customer while count maintaining 85% industry-leading customer retention and strong ARPU. And while we are still in early innings, as the newer cohorts start to anniversary, these are positive signals, indicative of the health of our expanding customer base. As we stood up Norton LifeLock, we shared the following commitments on performance. We said we would return customer count to growth, and we have since delivered 6 consecutive quarters of net customer adds. We said we would grow revenue mid-single digits, we delivered 5% revenue growth in fiscal year '21. We said we would operate at or above 50% operating margin, we did. We said we would generate annualized free cash flow at or above $900 million, we are and have been at this rate since the second half of fiscal year '21. And we committed $1.50 EPS on an annualized basis, which we achieved in Q3 of full year '21. And at that time, we were confident we would achieve these commitments. But we expected to deliver them over the long term. Now, as we close our first operating year as NortonLifeLock, we are proud to have achieved all these long-term commitments within just 1 year. We delivered these results as a team, and we feel great about it. But we're not satisfied. We are now turning our focus to the next phase of NortonLifeLock, and we want to reset expectations yet again. Let me share our thinking and approach. As we look forward and set our goals, it is critical to assess our current position and the opportunity in front of us. We are proud to say we are the largest consumer safety provider in the world. We have approximately 80 million users, and a large percentage of those are Norton 360 members. We have a highly recurring revenue base of over $2.5 billion and growing. And the majority of our direct customers stay with us for a very long time at a high rate of retention. We have incredible products and solutions with a global reach, multiple distribution channels, and the #1 brand recognition in consumer cybersafety. But are we satisfied? Absolutely not. There is an enormous growth opportunity in front of us. Right now, the market, defined here as global consumers that engage with the Internet, is incredibly under-penetrated. And the market is growing, cybercriminality is on the rise. And as the physical world and the online world become more and more blurred, the risks to cybersafety have never been greater. We have the opportunities to expand in this space globally. And we have all the ingredients to go after these opportunities and achieve accelerating growth. Starting with our product solutions and product portfolio, we have best-in-class products, and we will unlock new capabilities. We have a relentless focus on delivering great customer experience and are committed to providing world-class service. Our brands are strong and trusted. We are already known as the leader in security and identity. And we will build upon that with continued performance and reliability. We will continue to do what we say and be the most trusted brand, providing best-in-class protection for our customers. We have a diversified distribution channels to carry forward our go-to-market strategy with commitment around marketing investments, alignment on driving international growth and a plan to foster strategic partnerships. And now with Avira and BullGuard integrated, a path to accelerate in the freemium market. And as proven in the last year, we will operate efficiently. We have established a strong track record of execution. We have a leadership team aligned around growth and accountability, and our business model is healthy with high margins, strong free cash flow generation, and a capital allocation strategy aligned to returning 100% free cash flow back to shareholders, excluding acquisitions. Currently, we are growing revenue at mid-single digits, but we are not staying there. Our goal is to accelerate to double-digit growth. The market opportunity is there, and we have the assets aligned to achieve it. We know we can drive more engagement with our existing customers. We focus on this every day, and we'll continue to drive this. As you heard from Robert, we have opportunity to expand our reach and bring our products and solutions to new audiences and new geographies through our go-to-market strategy. As you heard from Gagan, we are committed to fueling innovation to stay at the forefront of the ever-changing market dynamics in cybersafety threats. And as we've shared in the past, M&A is a part of our growth plan. We have enormous opportunity in our industry and in our market, and we are not limiting ourselves to growth in our existing business. We are committed to striking the right balance between build versus buy on our path to accelerating growth to double digits. And across all these areas, we have a relentless commitment to employ a customer-first mentality and maintain a culture of operational excellence. We are a highly accountable organization, and we'll inspect what we expect. Here are some of our key operating metrics that we will use to evaluate our performance and progress on an ongoing basis. I won't go through each one, but let me touch on a few things. Customers is a critical measure of our performance. We recognize that consumers have choice and measuring customers coming into the top of our funnel will tell us if we are resonating and staying top of mind. Retention, ARPU and NPS are measures to assess if we are satisfying our customers' needs, if we are bringing in-demand products and services to market, and if we are increasingly called upon to protect them in their daily lives. On the bottom rail, we want to make sure our investments are performing. We will continue to fund marketing, but we will measure effectiveness and efficiency to ensure it's working. We will invest in innovation, and we will measure user engagement as well as product usage to ensure what we are building is relevant in our customers' minds. We will grow with our partners, and we will have metrics to measure our brand awareness, performance and increasing strength. We have a strong business model with healthy margins. Our gross margin is north of 85%, and our operating margin is currently 50% of revenue. We will continue to invest for growth with the lion's share of our resources going to sales and marketing and product and development while driving efficiencies in our G&A functions, consistent with our current model. Although we recognize the need to invest for growth, we stay committed to investing in a disciplined manner. In our core business, we will drive for growth while maintaining 50% operating margin or higher. We expect to make our investments in a diversified manner, including a mix of product innovation, customer acquisition, market expansion and strengthening our brands. We will fund these investments in the most efficient way, self-funding through productivity gains and keeping our infrastructure costs low. Alternatively, with new opportunities, we will focus on growth and generating EPS dollars, not necessarily at the core business operating margin rate. As we find fruitful areas of new investment that will drive sustainable growth, we will take the opportunities to drive acceleration while expanding EPS. And across the business, as we execute on these investments, we will make sure we keep our customers and shareholders at the forefront every step of the way. Let's talk cash flow and capital allocation. We currently generate over $1 billion free cash flow on an annualized basis and expect that to grow in line with our business. We are committed to returning 100% free cash flow back to our shareholders over the long term, excluding acquisitions. We have a new share repurchase program of $1.5 billion. We will operate at 2 to 3x net-debt-ratio as we create the flexibility to fund accelerating growth while maximizing shareholder value. We stay committed to our current dividend of $0.50 per share, which is approximately 1/3 of our free cash flow. The other 2/3 of our capital will be deployed in a growth-focused manner to M&A or to opportunistic share buyback or a combination of the 2. Turning to our guidance and long-term objectives. For full-year fiscal 2022, we are guiding 8% to 10% revenue growth and EPS of $1.65 to $1.75. And these expectations increase even more as we project out over the next 3 to 5 years. We are building and planning to scale up to double-digit rate of revenue growth. And when we achieve this level of growth, we expect EPS of approximately $3. These are big goals. These are not pie-in-the-sky aspirations. We have done our homework on what it takes to get there. And in fact, we've whiteboarded a high level path to achieve these performance levels, and I'd like to share that with you now. Here are our big goals that Vincent shared during his presentation, and what I'm going to refer to as the triple double; double customers, double-digit growth and EPS. These are big. So how do I get comfortable with sharing these with you today? Let's walk through it. On the left-hand side of the page, our revenue acceleration will be driven by approximately 1 to 2 points of product contribution; innovation, scale and the usage I talked about earlier. Another point coming from improved customer experience, the plan you heard about from Patrick. We will continue to foster our installed base and cross-sell/up-sell with new products, providing world-class service and increased engagement. We will drive up the NPS, and we expect that to translate to growth. Another 1 to 2 points of growth through new customer acquisition, both through direct channels as well as expanding partnerships. International expansion, we are currently about 60% domestic and have room to grow exponentially here. An expanded portfolio entering into the freemium market with Avira allows us to broaden our entry point. In acquisitions, we are focused on our mission to protect as many global consumers as possible, and pushing into adjacent markets will help us accelerate faster. Avira is a recent example of what we can do and how quickly we can do it. Based on our whiteboard map here, this ladders up to at least 10% growth in revenue year-over-year. And when I cascade that through our model, here is a high-level walk to doubling EPS dollars. We delivered $1.44 EPS in fiscal year '21. EPS expansion will come from our core business growing at mid-to-high single digits. We will need to invest in this growth, but we'll self-fund those investments through productivity and a cost-disciplined approach. M&A activity will deliver incremental EPS, and of course, opportunistic share buyback will contribute as well. All in, over the next 3 to 5 years, we have a path to an EPS of approximately $3. Considering our current annualized run rate of $1.50, that is double of where we are today. With that, I hope you are as excited and bullish about our business as we are. We have an incredibly special opportunity in front of us. We have a very hungry leadership team to go after it, and we have a healthy business model to support our plans. Thank you for dedicating your time and energy to be here with us today. We are very excited to take this forward, and we will be in touch along the way. Take care.