Image Source: LifeLock
LifeLock (LOCK) reported fourth-quarter results on Wednesday, and the identity theft protection provider showed that it's continuing to grow its membership base at an impressive clip.
LifeLock results: The raw numbers
| Metric |
Q4 2015 |
Q4 2014 |
Growth (YOY) |
|---|---|---|---|
|
Revenue |
$156.2 million |
$129.7 million |
20% |
|
Adjusted Net Income |
$30.5 million |
$27.7 million |
10% |
|
Adjusted EPS |
$0.30 |
$0.28 |
7% |
Source: LifeLock Q4 2015 earnings press release.
What happened with LifeLock this quarter?
Total revenue rose 20% year-over-year to $156.2 million, as consumer revenue grew 21% to $148.3 million and enterprise revenue increased 13% to $7.9 million.
Helping to drive consumer revenue higher was a 16% rise in the membership total, which ended the year at 4.2 million. The 296,000 gross new members added in Q4 made it the 43rd consecutive quarter of sequential growth in cumulative ending membership.
In addition, LifeLock's customers continue to show a willingness to pay more for its protection services: Monthly average revenue per member increased to $11.97, up from $11.43 in 2014's fourth quarter. And its customer retention rate remained high at 86.5%, although that was down from 87.7% in the prior year period.
All told, net income -- adjusted to exclude share-based compensation and non-recurring items -- increased 10% to $30.5 million. And adjusted earnings per share, which were affected by a higher share count compared to Q4 2014, rose 7% to $0.30.
CEO change
On Jan. 20, the company announced that Hilary Schneider would be replacing founder Todd Davis as CEO, effective March 1. Davis will be staying on as executive vice chairman.
"As LifeLock's president for the past three years, Hilary has been instrumental in establishing a foundation for LifeLock's future success, leading the company's efforts to enhance its processes, systems, and products," said lead director Roy Guthrie in a press release. "She is a highly talented technology executive with the experience and vision to lead continued value creation at the company."
Looking forward
LifeLock's management issued its full year 2016 guidance, including total revenue in the range of $660 million to $670 million and adjusted EPS in the range of $0.71 to $0.76. The company also expects to generate free cash of between $93 million and $98 million.
"Our products are more important than ever, and we are ideally situated to pioneer the next generation of advanced tools that consumers need to not only protect their identities, but to also manage them," said CEO-elect Hilary Schneider. "I look forward to working with the fantastic team at LifeLock to seize this great opportunity."
