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What’s Driving Symantec’s Consumer Digital Safety Business?

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Sep. 3 2018, Updated 9:02 a.m. ET

Key drivers of the Consumer Digital Safety unit

Symantec’s (SYMC) Consumer Digital Safety business continues to witness stable growth, driven by the successful integration of its acquisition of Blue Coat Systems and LifeLock. The launch of new products such as Endpoint Protection 14 and Cloud Workload Protection, coupled with the availability of updates to its existing products, are also contributing to its Consumer Digital Safety business growth.

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The Consumer Digital Safety ARPU (average revenue per user) continues to sustain upward momentum, buoyed by the company’s strategy to sell bundled products to its clients. The upsell of products and services to customers also supported ARPU growth for the company’s Consumer Digital Safety unit. At the end of the fiscal first quarter of 2019, its ARPU stood at $8.72, up 11% YoY (year-over-year).

Its partnership with Oracle (ORCL) and Amazon (AMZN) cloud is also helping Symantec distribute its product easily through cloud platform to its clients, allowing the company to expand its market reach. Symantec’s move toward the subscription-based business model from its one-time payment model may drive the company’s subscriber base and order size.

Comprehensive analysis of the segment

In the last five quarters, Symantec’s Consumer Digital Safety unit has generated double-digit revenue growth. During this period, the unit’s revenues grew at a CAGR (compound annual growth rate) of 1.8%. 

The graph above illustrates the segment’s revenue growth in the last five quarters. In the fiscal first quarter of 2019, the revenues from the Consumer Digital Safety business climbed 7.3% YoY to $600.0 million. Similarly, the company ended the fiscal first quarter of 2019 with 20.7 million customers compared with 21.1 million in the fiscal first quarter of 2018.

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