LifeLock Announces 2016 Third Quarter Results

LifeLock, Inc. (NYSE: LOCK), an industry leader in identity theft protection, today announced financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights:
  • Revenue: Total revenue was $170.3 million for the third quarter of 2016, up 12% from $152.0 million for the third quarter of 2015. Consumer revenue was $161.7 million for the third quarter of 2016, up 12% from $144.6 million for the third quarter of 2015. Enterprise revenue was $8.6 million for the third quarter of 2016, up 18% from $7.3 million for the third quarter of 2015.
  • Net Income: Net income was $14.4 million for the third quarter of 2016, compared with net loss of $65.1 million for the third quarter of 2015. The net loss for the quarter ended September 30, 2015 included the accrual of $96 million for the settlement with the FTC and related litigation. Net income per diluted share was $0.15 for the third quarter of 2016 based on 97.3 million weighted-average shares outstanding, compared with net loss per diluted share of $0.68 for the third quarter of 2015 based on 95.3 million weighted-average shares outstanding.
  • Adjusted Net Income*: Adjusted net income was $33.5 million for the third quarter of 2016, compared with adjusted net income of $27.6 million for the third quarter of 2015. Adjusted net income per diluted share* was $0.34 for the third quarter of 2016 based on 97.3 million weighted-average shares outstanding, compared with adjusted net income per diluted share of $0.28 for the third quarter of 2015 based on 99.5 million weighted-average shares outstanding.
  • Adjusted EBITDA*: Adjusted EBITDA was $36.5 million for the third quarter of 2016, compared with $29.8 million for the third quarter of 2015.
  • Cash Flow: Cash flow from operations was $5.6 million for the third quarter of 2016, leading to free cash flow* of $22.9 million after taking into consideration $2.0 million of capital expenditures, and $18.6 million of payments for previously accrued legal settlements and $0.6 million of payments for expenses incurred in connection with the FTC litigation. This compares with cash flow from operations of $20.8 million and 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 incurred in connection with the FTC litigation for the third quarter of 2015.
  • Balance Sheet: Total cash and marketable securities at the end of the third quarter of 2016 was $166.1 million, up from $155.9 million at the end of the second quarter of 2016.

* A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures".

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