NortonLifeLock’s ( NLOK Quick Quote NLOK - Free Report) fourth-quarter fiscal 2021 non-GAAP earnings increased 54% from the year-ago quarter to 40 cents per share. Also, the bottom line beat the Zacks Consensus Estimate of 37 cents. Revenues of $677 million surpassed the consensus mark of $658 million and rose 11% year over year. This outperformance was mainly driven by impressive customer growth. Quarter Details
Direct average revenue per user (ARPU) decreased 3% year over year to $9.10 per month. Continued stabilization of direct customer count was a positive.
The company’s direct customer count increased 2 million year over year during the fiscal fourth quarter, bringing the total count to 23 million. In the reported quarter, gross profit climbed 10.8% year over year to $573 million. Moreover, gross margin expanded 110 basis points (bps) to 85.3%. Operating income on a non-GAAP basis jumped 34% year over year to $342 million. Operating margin was 50.5%, up 900 bps. Balance Sheet
As of Apr 2, 2021, NortonLifeLock had $933 million in cash and cash equivalents, down sequentially from $1.05 billion. Long-term debt was $3.29 billion, down slightly from the $3.54 billion witnessed in the previous quarter.
Net cash of $356 million was provided by operating activities in the fiscal fourth quarter, as compared to $293 million of cash used in operational activities in the previous quarter. Notably, the company authorized a quarterly cash dividend of $0.125 per share, payable on Jun 23 to all shareholders of record as of Jun 09. Moreover, an additional share repurchase of $1.5 billion was authorized by the company, along with the remaining $274 million remaining in the current authorization, increasing the total share repurchase remaining to approximately $1.8 billion. Full-Year Highlights
For full-year fiscal 2021, revenues came in at $2.55 billion, up 2.4% year over year. Non-GAAP earnings of $1.44 per share grew 60% year over year.
For the first quarter of fiscal 2022, NortonLifeLock expects revenues between $680 million and $690 million. Non-GAAP earnings are expected between 40 cents and 42 cents per share.
For fiscal 2022, the company projects 8-10% year-over-year growth. Moreover, non-GAAP earnings from continuing operations are expected between $1.65 and $1.75 per share. Zacks Rank and Stocks to Consider
NortonLifeLock currently carries a Zacks Rank #3 (Hold).
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