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How Symantec’s Consumer Segment Performed

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Feb. 19 2018, Updated 10:31 a.m. ET

Consumer Digital Safety segment’s double-digit growth

Earlier in this series, we discussed Symantec’s (SYMC) Enterprise Security segment’s performance. Let’s see how the Symantec’s Consumer Digital Safety segment, previously known as the Consumer Security segment, performed in fiscal 1Q18. This segment provides digital safety offerings that protect information, networks, devices, and the identities of consumers.
consumer digital safety

Symantec’s Consumer Digital Safety segment saw its non-GAAP[1. generally accepted accounting principles] revenues grow 47.0% to $584.0 million in fiscal 3Q18. Starting in fiscal 2Q18, Symantec has provided direct ARPU (average revenue per user), subscribers, and partner revenues for this segment. 

In fiscal 3Q18, the segment’s direct customer count stood at 21.3 million, which is the same as in fiscal 2Q18. Its direct ARPU increased to $8.38 per month, which is an increase of 4.0% from fiscal 2Q18.

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Improved margins

The strategic acquisition of LifeLock in 2016 proved to be a catalyst for this segment. The company noted that it expanded the segment’s reach “into a new market category of consumer digital safety.” The Lifelock acquisition has provided a new lease on life to this segment, which had been reporting a decline in the last several quarters.

The Equifax (EFX) data breach, which ranks among the largest data breaches disclosed by a public company, led to a surge in demand for Symantec’s LifeLock identity protection product.

This segment’s operating margin was 53.0% in fiscal 3Q18, a sequential increase of 5.0%. Comparatively, this segment posted a higher margin than the Enterprise Security segment.

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