LifeLock Logo download (1)LifeLock revenue was $152.0 million for the third quarter of 2015, up 24% from $123.0 million for the third quarter of 2014. Consumer revenue was $144.6 million for the third quarter of 2015, up 25% from $116.1 million for the third quarter of 2014. Enterprise revenue was $7.3 million for the third quarter of 2015, up 5.6% from $6.9 million for the third quarter of 2014.

Net income (loss): Net loss was $65.1 million for the third quarter of 2015, which included a pre-tax charge of $96.0 million related to a proposed settlement with the FTC, a consumer class action suit, and state attorneys general, compared with net income of $5.5 million for the third quarter of 2014. Net loss per diluted share was $0.68 for the third quarter of 2015 based on 95.3 million weighted-average shares outstanding, compared with net income per diluted share of $0.06 for the third quarter of 2014 based on 98.5 million weighted-average shares outstanding.

Adjusted Net Income: Adjusted net income was $27.6 million for the third quarter of 2015, compared with adjusted net income of $15.9 million for the third quarter of 2014. Adjusted net income per diluted share was $0.28 for the third quarter of 2015 based on 99.5 million weighted-average shares outstanding, compared with adjusted net income per diluted share of $0.16 for the third quarter of 2014 based on 98.5 million weighted-average shares outstanding.

Adjusted EBITDA: Adjusted EBITDA was $29.8 million for the third quarter of 2015, compared with $17.9 million for the third quarter of 2014.

Cash Flow: Cash flow from operations was $20.8 million for the third quarter of 2015, leading to free cash flow* of $18.4 million after taking into consideration $4.1 million of capital expenditures and $1.6 million of payments for expenses related to the FTC litigation. This compares with cash flow from operations of $26.1 million and free cash flow of $22.7 million, after taking into consideration $3.5 million of capital expenditures, for the third quarter of 2014.

Business Highlights:  Recorded the 42nd consecutive quarter of sequential growth in revenue and cumulative ending members.  The company acquired a team of product and development data experts from BitYota Inc. for $12.8 million.  The team has extensive expertise in large scale data processing for the purpose of developing new data-based products within our consumer segment. Added approximately 251,000 gross new members in the third quarter of 2015 and ended the quarter with approximately 4.1 million members.  Increased monthly average revenue per member to $11.91 for the third quarter of 2015 from $11.22 for the third quarter of 2014.

The Company also announced that it has reached agreements with the staff of the Federal Trade Commission and representatives of a national class of consumers on a comprehensive settlement resolving outstanding litigation relating to its past marketing representations and information security programs. The Company noted that the agreements are not yet final, as the FTC staff’s recommendation to approve the settlement must still be approved by the Commission itself and a federal judge, and the class action settlement will require review and approval by the court.

The proposed FTC settlement does not require us to change our current products, services, or business and information security practices, including in particular, our current marketing and advertising practices. In light of the agreements, LifeLock has accrued an additional $96 million in reserves, bringing the total amount of its reserves for this matter to $116 million. This $116 million also includes a $3 million reserve for a potential settlement with state attorneys general.

Source:  LifeLock Press Release