On this page of StockholderLetter.com we present the latest annual shareholder letter from Gen Digital Inc. — ticker symbol GEN. Reading current and past GEN letters to shareholders can bring important insights into the investment thesis.

 •  7/29/2024 Letter Continued (Full PDF)
 •  7/31/2023 GEN Stockholder Letter
 •  More "Application Software" Category Stockholder Letters
 •  GEN Benford's Law Stock Score = 90

GEN Shareholder/Stockholder Letter Transcript:

2024
Annual
Report
1

FY24 Snapshot
Core Cyber Safety Metrics
39M+
Non-GAAP Metrics
$3.9B
$3.8B+ Revenue
Direct
Customers
Total Bookings
3.4x
+15% constant currency
58% Op Margin
+340 basis points
Net Leverage
$7.25
Direct Monthly
ARPU
25+
Product Awards
& Recognition
$1.96 EPS
77.5%
Direct
Retention
+11% constant currency
~$300M
Annual Cost Synergies
achieved in 18 months
65M+
Total Paid
Customers
Today, five billion people use the internet. Digital life is life.
People bank, shop, learn and connect from anywhere. They
use voice assistance in homes and cars to navigate their
lives. And send money to friends and businesses with digital
wallets. That   s the freedom digital life allows today.
At Gen, everything we do is with the purpose to power
Digital Freedom. We create technology that helps people to
take full advantage of the digital world, safely, privately and
confidently     so together, we can build a better tomorrow.
Our customers    needs are front and center to this mission.
So, as a global leader in Cyber Safety, we focus our passion,
research and innovation on critical problems facing society,
today and tomorrow. We do this by harnessing the power
of our consumer brands, powerful artificial intelligence and
technology expertise, and deep insights. We use the latest
technology to create cybersecurity, identity protection and
online privacy products to help protect approximately 500
million users in more than 150 countries.
2

FY24
shareholder letter
Vincent
Pilette
CEO & President
Dear Investors,
Fiscal year 2024 was a transformational year for Gen. We
successfully integrated Avast, returned our direct customer
base to growth and delivered our fifth straight year of organic
revenue growth.
We finished the year with strong operating results across the
board with record revenue and profitability. We generated
over $3.8 billion in total revenue and $3.9 billion in bookings.
We also achieved nearly $300 million in annual cost
synergies within 18 months of the Avast acquisition.
This helped drive non-GAAP operating income to over $2.2
billion, representing a margin of 58%, and up 7 full points
over that timeframe. Our disciplined execution and strong
capital allocation enabled us to deliver $1.96 in full year
non-GAAP EPS, up 8% from the prior year and up 11% in
constant currency.
With the integration of Avast essentially complete, we now
have one of the largest consumer Cyber Safety platforms
in the world, with a family of brands that   s uniquely able to
Note: Revenue, operating margin, and EPS are presented in the letter are non-GAAP.
Please refer to the    Use of Non-GAAP Financial Information    section for reconciliation.
serve more customer needs in more geographies than ever
before. We help protect approximately 500 million users
in more than 150 countries, including over 65 million paid
customers who trust us to keep them Cyber Safe. More than
39 million of these paid customers are our direct customers,
up nearly 1 million year-over-year, with a retention rate
above 77%.
As we shared at our Investor Day last November, we are
pursuing a plan to grow our direct customer base, increase
cross-sell and up-sell penetration rates, improve direct
customer retention and accelerate partner revenue growth.
These five levers are expected to help accelerate revenue
growth to the mid-single digits and grow annual non-GAAP
EPS 12% to 15% over the next three years.
We remain committed to returning excess free cash flow
to shareholders through our quarterly dividend, stock
repurchases and voluntary debt repayments. In fiscal year
2024, we paid down nearly $1 billion of our Term Loan B with
an additional $200 million of debt repaid per our maturity
3

schedule. We reduced our net debt-to-EBITDA ratio
down to 3.4 times from 3.9 times at the time of the Avast
acquisition, and closer to our target of less than 3 times by
fiscal year 2027. We also returned more than $750 million
of capital to shareholders in the form of regular quarterly
dividends and share buybacks. The board recently
expanded our share buyback program to $3 billion to
further support our capital allocation strategy and drive
shareholder value.
threats and better protect our customers    digital lives. In fiscal
year 2024, Gen blocked a record 14+ billion attacks, up 40%
over the prior year, using threat telemetry data to update our
models 500 times a day and train them on data sets that are
6 petabytes large. We also released Norton Genie, a leading
AI-powered scam detection app. In the first 100 days, the app
was downloaded over one million times, bringing Cyber Safety
and scam detection to even more people.
We   re proud to be building a company that not only drives
meaningful impact to people around the world through
As we move forward, we will continue to make disciplined
the cyber safety products and services we provide, but
investments in marketing, as well as product
also through the passion and dedication of our
innovation and technology. We believe this
global team. This year we reshaped our social
combination will enable us to reach
new and existing customers through
impact strategy to align our social impact
We   re
proud
to
mission with the business goals and
bolstering our product portfolio with
focuses that can have a positive
differentiated solutions, amplifying
be building a company
impact on the world. These new
our international presence and
that drives meaningful
social impact priorities include:
expanding into trust-based
impact to people around
Cyber Safety education and
adjacencies. Through expanding
the world... through
training; data privacy and
into trust-based adjacencies, we
the passion and
protection; diversity, equity
can more comprehensively protect
dedication
of
our
and inclusion; volunteering
all of the ways people leverage the
global team.
and giving; and the
online world.
environment. Through these
commitments, last year we
From remote work and learning,
provided Cyber Safety education
to telehealth, online banking and
and training to 5+ million people.
communicating with friends and family,
And in April 2024, Gen signed a pledge to the European
our lives are more and more digitally connected.
Commission Digital Skills and Jobs Platform to help close the
Through all these touchpoints, customers trust that our
gender gap in the tech sector by partnering with Women4Cyber
family of Cyber Safety brands will allow them to live their
to mentor 1,000 women for success in cybersecurity fields.
digital lives safely.
And with ever-evolving cyberthreats, we strongly believe
Cyber Safety will continue to be a growing market for
the years ahead. This growth is fueled by the increase in
activities online: new technologies, smart devices, digital
identities and an increasingly more connected world
means consumers will face a range of new cyberthreats
and online risks in their digital lives. Cybercriminals have
not only expanded their reach, but the sophistication of
digital threats and attacks are becoming increasingly more
realistic and believable, particularly with the advancement
of generative AI and large language model technology. We
are at the forefront of innovation and threat research to
protect consumers against these and future cyber dangers.
Gen is at the leading-edge of cyber safety, and our many
investments in product innovation, threat research and
AI technologies reinforce our ability to combat these
I couldn   t be prouder of our team   s accomplishments since
we launched Gen just over a year ago. Our solid fiscal year
2024 results reinforce our confidence in the tremendous
opportunity in consumer Cyber Safety and put us right on
track to meet our long-term aspirations. But we have only
just begun. As we look to fiscal year 2025, we will remain
disciplined in how we operate, focus on executing our plan
and will be strategic and intentional in where we invest to
maximize long-term shareholder value. We are confident that
our reach, customer-centricity, innovation and disciplined
execution will enable us to deliver on our strategy to accelerate
long-term and profitable revenue growth in the years ahead.
We are committed to building new ways to keep people safe
from the threats of today, tomorrow and the future to create a
safer world today and for generations to come.
- Vincent, Natalie, and the Gen Team
4

Forward-Looking Statements
This letter contains statements which may be considered forward-looking within the meaning of the U.S. federal
securities laws. In some cases, you can identify these forward-looking statements by the use of terms such as    expect,   
   will,       continue,    or similar expressions, and variations or negatives of these words, but the absence of these words
does not mean that a statement is not forward-looking. All statements other than statements of historical fact are
statements that could be deemed forward-looking statements, including, but not limited to: our growth strategies
and transformation, our financial targets, statements relating to consumers and customers and market trends, our
corporate responsibility initiatives and any other statements of expectation or belief; and any statements of assumptions
underlying any of the foregoing. These statements are subject to known and unknown risks, uncertain ties and other
factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results
expressed or implied in this supplemental information. Such risk factors include, but are not limited to, those related to:
the consummation of or anticipated impacts of acquisitions (including our ability to achieve synergies and associated
cost savings from the merger with Avast), divestitures, restructurings, stock repurchases, financings, debt repayments
and investment activities; difficulties in executing the operating model for the consumer Cyber Safety business; lower
than anticipated returns from our investments in direct customer acquisition; difficulties in retaining our existing
customers and converting existing non-paying customers to paying customers; difficulties and delays in reducing run
rate expenses and monetizing underutilized assets; the successful development of new products and upgrades and
the degree to which these new products and upgrades gain market acceptance; our ability to maintain our customer
and partner relationships; the anticipated growth of certain market segments; fluctuations and volatility in our stock
price; our ability to successfully execute strategic plans; the vulnerability of our solutions, systems, websites and data to
intentional disruption by third parties; changes to existing accounting pronouncements or taxation rules or practices;
and general business and macroeconomic conditions in the U.S. and worldwide, including economic recessions, the
impact of inflation, fluctuations in foreign currency exchange rates, changes in interest rates or tax rates and conflicts
including Russia   s invasion of Ukraine. Additional information concerning these and other risk factors is contained in
the Risk Factors sections of our most recent reports on Form 10-K and Form 10-Q. We assume no obligation, and do not
intend, to update these forward-looking statements as a result of future events or developments.
Use of Non-GAAP Financial Information
This letter includes the non-GAAP measures of revenue, operating margin, and earnings per share, which are adjusted
from results based on GAAP and exclude certain expenses, gains and losses. We also provide the non-GAAP metrics
of Consumer revenues, constant currency revenues and free cash flow, which is defined as cash flows from operating
activities less purchases of property and equipment. These non-GAAP financial measures are provided to enhance
the user   s understanding of our past financial performance and our prospects for the future. Our management team
uses these non-GAAP financial measures in assessing Gen   s performance, as well as in planning and forecasting future
periods. These non-GAAP financial measures are not computed according to GAAP and the methods we use to compute
them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should
not be considered a substitute for financial information presented in accordance with GAAP and should be read only in
conjunction with our consolidated financial statements prepared in accordance with GAAP.
Note: Revenue, operating margin, EPS, and unlevered free cash flow metrics presented in the letter are non-GAAP.
Please refer to the    Use of Non-GAAP Financial Information    section for reconciliation.
5



 7/29/2024 Letter Continued (Full PDF)