NortonLifeLock Inc. (NASDAQ:NLOK) Q2 2020 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


NortonLifeLock Inc. (NASDAQ:NLOK) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to Norton LifeLock Second Quarter of Fiscal 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Ms. Cynthia Hiponia, Norton LifeLock, Vice President of Investor Relations. Ma'am, you may begin.

Cynthia Hiponia

Great, thank you, Ian. I'm pleased to welcome you to our call to discuss our second quarter fiscal year 2020 earnings results. We posted the earnings material and slides to our Investor Relations' Events web page. Speakers on today's call are Rick Hill, NortonLifeLock, Interim President and CEO; Vincent Pilette, Executive Vice President and CFO; and Samir Kapuria, EVP and General Manager of Cyber Consumer Cyber Safety. This call will be available for replay via webcast on our website.

As a reminder, in connection with the sale of certain assets of our Enterprise Security business to Broadcom on November 4th 2019, we changed our corporate name from Symantec to Norton LifeLock. The results of our Enterprise Security business were classified as discontinued operations in our consolidated -- condensed consolidated statements of operations and thus excluded from both continuing operations and segment results for all periods presented.

Starting in the second quarter of fiscal 2020, we operate in one reportable segment. Revenues and associated costs of our ID Analytics solutions, which were formerly included in the Enterprise Security segment are now included in our remaining reportable segment. The assets acquired and liability sold to Broadcom were classified as discontinued operations in our condensed consolidated balance sheet. I would like to remind everyone that all references to financial metrics are non-GAAP, unless otherwise stated.

Please refer to the supplemental materials posted on the Investor Relations website for further definitions of our non-GAAP metrics. Please note non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measures in the press release and supplemental materials posted on our website. We believe our presentation of non-GAAP financial measures when taken together with corresponding GAAP financial measures provides meaningful supplemental information regarding our operating performance for reasons discussed below. Our management team uses these non-GAAP financial measures in assessing our operating results as well as when planning and forecasting future periods.

We believe our non-GAAP financial measures also facilitate comparisons of our performance to prior periods and then investors benefit from understanding our non-GAAP financial measures. Non-GAAP financial measures are supplemental and should not be considered as a substitute for financial information presented in accordance with GAAP. Today's call contains forward-looking statements based on conditions we currently see, those statements are based on current beliefs, assumptions and expectations speak only as of the current date, and as such, involve risks and uncertainties that may cause actual results to differ materially from our current expectations.

In particular, our statements regarding our sale of our Enterprise Security assets to Broadcom, any anticipated benefits from