BREAKING NEWS: Lifelock Inc (NYSE:LOCK), Declares 2015 Third Quarter Results

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During Thursday’s afternoon trade, Shares of Lifelock Inc (NYSE:LOCK), gained 42.62% to $13.84. The firm opened its current trade at $13.34, and as of now, it is trading at $13.85. The total volume traded for the day is 7.97M shares, as compared to its average daily volume of 1.09M shares. The stock is floating in a range of $12.81 $14.43. The stocks hold the market capitalization of $1.32B.

LifeLock, Inc. (LOCK), an industry leader in identity theft protection, declared financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 & Recent Business Highlights:

  • Recorded the 42nd successive quarter of sequential growth in revenue and cumulative ending members.
  • Attained a team of product and development data experts who have extensive expertise in large scale data processing from BitYota, Inc., for $12.8 million for the purpose of developing new data-based products within our consumer segment.
  • Added about 251,000 gross new members in the third quarter of 2015 and ended the quarter with about 4.1 million members.
  • Raised 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 declared 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 regardingits 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 projected FTC settlement does not require us to change our current products, services, or business and information security practices, counting 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 comprises a $3 million reserve for a potential settlement with state attorneys general.

“We are happy with our performance in the quarter, which reflected a 24% improvement in revenues and strong gains in adjusted net income and Adjusted EBITDA,�? said Todd Davis, LifeLock’s Chairman and CEO. “In addition, we believe the agreements we declared recently are in the best interest of our shareholders and represent a positive step toward achieving closure on substantial outstanding litigation against the Company. These settlements, if approved, will enable all of us to focus on our mission of protecting our members.�?

Third Quarter 2015 Financial Highlights:

Revenue: Total 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 comprised a pre-tax charge of $96.0 million related to a projected settlement with the FTC, a consumer class action suit, and state attorneys general, contrast 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, contrast 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, contrast 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, contrast 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, contrast 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.

Balance Sheet: Total cash and marketable securities at the end of the third quarter of 2015 was $332.2 million, up from $326.0 million at the end of the second quarter of 2015.

* A reconciliation of GAAP to non-GAAP financial measures has been offered in the financial statement tables comprised in this press release. An explanation of these measures is also comprised below under the heading “Non-GAAP Financial Measures.�?

LifeLock, Inc. (LOCK) is a leading provider of proactive identity theft protection services for consumers and consumer risk administration services for enterprises. LifeLock’s threat detection, proactive identity alerts, and comprehensive remediation services assist provide peace of mind for consumers amid the growing threat of identity theft. Leveraging unique data, science and patented technology from ID Analytics, Inc., a wholly owned partner, LifeLock offers identity theft protection that goes significantly beyond credit monitoring.

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