uploads///symantec revenues

Does Symantec Foresee Revenue Growth in 2020?

By

May. 14 2019, Published 1:02 p.m. ET

Symantec’s revenue

Symantec’s (SYMC) revenue of $1.195 billion in the fourth quarter of 2019 missed analysts’ estimate of $1.21 billion but was within the company’s guided range of $1.19 billion–$1.22 billion. Symantec’s revenue fell 3.2% YoY (year-over-year), but excluding contract liabilities, it fell 1.7% YoY to $1.189 billion in the quarter.

In the first quarter, the company expects total revenue in the range of $1.175 billion–$1.205 billion, marking 3.5% YoY growth. The additional week in the first quarter should benefit the company’s revenue by $70 million. For fiscal 2020, the company expects revenue in the range of $4.76 billion–$4.9 billion, up from its fiscal 2019 revenue of $4.762 billion. 

Article continues below advertisement

Revenue by segment

The Consumer Cyber Safety segment delivered flat YoY revenue of $605 million in the fourth quarter on a constant-currency basis. The segment’s revenue was aided by higher direct ARPU (average revenue per user) offset by its average direct customer count. In the fourth quarter, its average direct customer count fell slightly from third-quarter levels to 20.4 million. Its direct ARPU was marginally higher compared to the third quarter at $8.83 per month. The company expects its direct customer count to contribute ~90% of the company’s revenue.

In the first quarter of 2020, Symantec expects to see revenue in the range of $620 million–$630 million for the Consumer Cyber Safety segment, which implies a 5.5% YoY rise on a constant-currency basis. For fiscal 2020, the company expects Consumer segment revenue in the range of $2.46 billion–$2.5 billion.

In the Enterprise Security segment, the company reported flat revenue of $590 million in the fourth quarter on a YoY and a constant-currency basis. The segment’s revenue was dented by lower-than-expected levels of business, including hardware and license sales. While Enterprise Security contract liabilities were down 1% YoY to $2.011 billion, they were 6% higher than in the previous quarter. The segment’s fourth-quarter reported billings fell 24% YoY to $712 million and were lower than the company’s expectations.

For the first quarter of fiscal 2020, Symantec expects Enterprise Security segment revenue in the range of $555 million–$575 million, which implies weak 1.5% YoY growth on a constant-currency basis. For fiscal 2020, the company expects Enterprise Security segment revenue in the range of $2.3 billion–$2.4 billion.

Advertisement

More From Market Realist