What's happening: Shares of LifeLock (LOCK) were down roughly 10.5% as of 1 p.m. Thursday after the company issued better-than-expected second-quarter results, but followed with disappointing guidance.
Quarterly revenue rose 25% year over year to $145 million, including a 27% jump in consumer revenue to $138.3 million, and a 4% increase in enterprise revenue to $6.4 million. That translated to adjusted net income of $10 million, or $0.10 per diluted share, up from adjusted net income of $0.05 per diluted share this time last year. Analysts, on average, anticipated revenue of only $143.6 million, and net income of $0.09 per diluted share.
For the current quarter, however, LifeLock anticipates revenue of $147 million to $149 million, and adjusted net income per share of $0.25 to $0.26. Analysts were expecting earnings of $0.25 per share, and higher revenue of $151.2 million.
In addition, for the full-year 2015 LifeLock sees revenue of $577 million to $582 million, and adjusted net income per share in the range of $0.58 to $0.61. Analysts models were much more optimistic, calling for 2015 revenue and earnings of $587.5 million and $0.66 per share, respectively.

Why it's happening: "While we are still early in the process," explained LifeLock CFO Chris Power, "our updated guidance assumes that the publicity from the lawsuit with the FTC will cause an increase in attrition and headwind to our new member acquisition on a short-term basis."

That's fair enough; recall just over a week ago, shares of LifeLock plummeted 49% in a single day after the FTC announced it is taking action against the company for allegedly violating a 2010 order regarding deceptive advertising and properly securing consumers' sensitive information. And though LifeLock has made it clear it disagrees and is prepared to defend itself in court, it stands to reason the FTC's action alone would be enough to hurt the company's brand and rapport with skittish consumers.

Power also insisted "Irrespective, we continue to expect the company to generate strong revenue growth and meaningful cash flow and profitability during the third quarter and full year, and we remain confident in our long-term growth prospects."

Whether that's accurate remains to be seen. But at least for now, it's clear LifeLock has plenty of work ahead to regain the full trust of its customers and investors.