NortonLifelock (NLOK) Earnings Review - Raymond James
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Raymond James analyst Robert Majek reiterated a Market Perform rating NortonLifelock (NASDAQ: NLOK) after F3Q results showed revenue up 6% y/y, billings up 10% and customer count increased by 334K q/q to 21M. Net retention rate and ARPU remained at 85% and $9.00+ respectively.
The analyst stated "the company walked investors through its Avira acquisition which should add 3% revenue growth, be accretive year 1, and help it expand its market share internationally. Investor discussion remains on 1) what customer net add trajectory may look like post COVID, 2) the ARPU expansion opportunity (esp. with Avira at <$50% of core ARPUs), and 3) Norton's international growth strategy. On the last point, we wonder if NortonLifeLock should become more acquisitive going forward given the potential strong incremental margins & "beachhead opportunity" from bolting on various regional players such as Avira. Overall; we are enthusiastic around the company's potential for accelerating revenue growth but remain on the sidelines until we can get more comfort around the net add trajectory post COVID and confidence in long-term demand for company's paid consumer security and identity offerings."
Shares of NortonLifelock closed at $20.75 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Related EntitiesRaymond James, Earnings, Definitive Agreement
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