MoneyLion Inc.

All right. Good morning, everyone. Thanks for joining us here in New York. Really appreciate it. I'm Jason Starr, Jen's Vice President of Investor Relations. We've got a great event for you today, and we hope you really enjoy it. Presenting today will be Vincent Pellet, Jen's CEO. Andre Vilcek, Jen's president, and Natalie Dursey, Jen's CFO. Before we get started, I'd like to review a couple quick logistical items. Earlier today, we issued our Q2 fiscal year 24 financial results, and we've posted the press release, the investor letter, and our presentation to the IR website. For today's presentation, we're going to take Q&A at the end of today's event. And for those on the webcast, please use the Q&A tool in the upper right portion of the webcast player. Following today's event, we'll make a replay available on the investor relations page, as well as all of the investor presentation materials as well. And finally, today we'll be making some forward-looking statements about our business, our financial performance, and our operations. These statements are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could vary materially. Please refer to our cautionary statements on our press release and the risk factors in our filings with the SEC, particularly our annual filings on Form 10-K and our quarterly filings on Form 10-Q. We will also reference non-GAAP financial measures during the presentation today. Please see our investor website, our press release, and presentations for reconciliations from GAAP to non-GAAP measures. With that, let's get started.

There's a new generation out there. Not Gen X, Y, or Z. It's Gen D. Generation Digital. Five billion people and counting who are all online now and from now on. Today, digital life is life. People bank, shop, learn, and connect from just about anywhere. Use voice assistants in their homes and cars to navigate their lives. And send money to friends and stores with digital wallets. Access is as easy as your face or fingerprint. That's just the freedom digital life allows now. Imagine what the future will bring. We have. Which is why Gen is going beyond digital safety. Rooted in our heritage of protecting the first digital generations. Our family of brands is focused on powering digital freedom and possibilities for generations to come. Our trust-based solutions will do more than just help over 500 million people who use our products and services around the world live fuller, safer digital lives today. We'll help define what it means to live free in the digital world of tomorrow. Excited for what's next? We are too.

We rang the bell this morning and told me a little secret. It's when you clap very loud, your stock goes up. So I believe them. So, yes. Thank you, Saket. I like it. All right. Good morning. I'm Vincent Pilet, CEO of GenDigital. For those who don't know me, I've participated to a few turnarounds, EFI, Logitech, and then I joined Symantec in 2019. And their turnaround as CEO started, and today I'll be able to report where we are and where we're going. I have to apologize to some of you. We ran out of coffee. You know, I have to tell you another secret is it's very difficult to run a business at 60% margin and you use every trick you have to make sure you cap your spend to what you can afford. So today's our first Analyze Day as a gen. It's actually our anniversary. A year ago, we closed the deals. Two years ago, Andre and I were dreaming about putting our two companies together and really embarking on a very broad mission really powering digital freedom for everyone, which really translates into building the tools, the technological tools, to ensure that everyone can enjoy the digital world in a safe, private, and confident way. And today, you'll hear from Andre, from Natalie, we feel really well positioned to drive the next generation of cyber safety, embarking on that great journey. I will quickly summarize how we put Jen's capabilities and assets to win in this consumer cyber safety market. Andre will have the most fun part, which is really talking about the innovation and the portfolio and where it's going next. And then Natalie will, on behalf of the go-to-market team, unpack the value of our large and growing customer base. and how that translates into the financials. And then I will summarize what's next. After the presentations, we'll have Q&A. And then we'll have lunch with management. I know that it's important for some of you to understand that it's not just me or Natalie. Sometimes you see Andre. But we have very strong teams. Travis leading the go-to-market was the CEO of Avira. We have Judy that has a lot of experience managing customer success. So you'll meet the entire leadership team. But let's dive in. We definitely are a mission-driven team. We're very honored to be able to drive a very important topic for millions of our customers, I should say hundreds of millions of our users, and making sure that they can live that digital life in a safe way. We also feel that we are at the cusp of delivering another step in our performance as we roll out our new portfolio, fully integrated stack, delivering that personalized, always on cyber safety. But before we talk about what's coming next, let's go back to the beginning. A few years ago, I explained to you that we saw how three underlying forces, underlying the consumer cyber safety market, were really growing and pushing forward. Obviously, the digital life today is just live, and the applications in the digital world continue to increase. Even post-COVID, a few weeks ago, I had a doctor appointment, and I thought it was over. But still, before I can go to the clinic, I have to go to do a Zoom call and pass some information. Those applications are here to stay in the post-COVID world. The technology that powers the digital world continues to evolve. And you'll hear from Andre, the new wave of artificial intelligence is creating a new wave of risks on the threat landscape and then opportunities on the protection side. And then the threat landscape also continues to evolve. We've seen now they're using AI tools to be able to get to the bad acting or activities. They're using the dark web to resell or... lobby others, and so that also is a growing, and Andre will walk through the different waves we've seen in that threat environment. At the center of it all, we have millions, actually I should say billions of internet users that all they want is to really live that digital life in a confident way without facing the risk of hackers. Five billion internet users all having a digital life and evolving digital life is actually an opportunity. Many people ask me, hey, what's your addressable market? I always say the five billion plus that's connected to the internet should be protected at all times because you never know how your data or what you value online will be compromised. Obviously, it has evolved. A few years ago, it was 5% that the penetration rate was consumer buying a full cyber safety protection. And that has evolved now. We have about 10% of full penetration. But it still stays massively under-penetrated. There's definitely tailwinds and the increase of threats. The financial breaches are all tailwinds. But we have also some headwinds. whether it's a consumer that was not aware of the risk or simply is willing to take the risks or is freezing in front of the technology that can create that risk or feels that the tools are not easy to use. We still have a lot of work to do to make consumer cyber safety very easy to use, always on, that you don't see, but you only interact at moment of truth. And that's why we created GEN. GEN is that broad mission of basically increasing that adoption of cyber safety. And so our mission was and has always been to build those tools to make sure that everyone can take advantage of that digital world. We've innovated first by bringing device security to network security, bringing credit monitoring or identity protections together, and we called it Cyber Safety First. We launched the first... all-in or all-in-one membership. And for a membership fee, you could have access to an entire portfolio of innovations to protect you in the digital world. We started to re-vote all of our applications, some coming from organic activities, some from acquisitions, into a common stack with a modular architecture, enabling us to really deliver based on the customer needs. And we put the customer needs at the center of the development of our portfolio. And with that, expanded the TAM. 13 billion a few years ago, growing to 18 billion is what we call the core cyber safety. Made of the core elements in security, identity protection, and privacy. And then we built up new applications, what we call expanded applications. as the needs of the consumer was evolving. And with that, we increase our time with new applications and we'll come back on what we've done in expanding the portfolio to get to new use case. So as I mentioned, consumer needs being at the core of the development of our portfolio. And it's really about really understanding for the hundreds of millions of users we have how they behave online, what ways they create to be able to develop the best of their portfolio. We survey, we discuss, we do a lot with our customers to get that loop-in feedback and understanding what their core needs is. We put that core, the base market, with the traditional core market we let in antivirus, with data protection, with credit monitoring, alerts and restoration systems, a virtual private network tool, together and call it the cyber safety base and going to expand that. Then we look at the four core needs. How do you protect against all hidden security threats? How do I keep my financial safe online? How do I control my private data? How do I verify that the person or the information I deal with online is credible? And with that, we've extended to new use case building up from our position. One thing is sure, as we double our time, we do not see this market as a mature, stable, or some of you have called it declining market. It's an expanded opportunities to go and provide full cyber safety. And Andre will talk more about the innovation that we drive to address those opportunities. So we talked about how the underlying trends continue to accelerate in the post-COVID momentum. How do we have still a very large adoption penetration opportunity, less than 10% purchase today, a full combined consumer cyber safety protection. how there is some tailwinds and some headwinds, and that our innovation can drive and remove some of those headwinds to accelerate then our penetration and our overall TAM. And so it's with that in mind that we've built up our company and embarked on a very broad mission. It all started in 2019, I mentioned, I had joined Symantec. Actually, I had the mandate from some on the board, some of the shareholders saying, hey, this consumer division is run for cash. Maybe you sell that and you really concentrate on the enterprise. When we talk about cyber safety, 99% of our discussion were about enterprise. We actually ended up doing the reverse, recognizing the underlying growing trends I've mentioned under the consumer business. We sold the enterprise business to Broadcom and returned $12 in special dividend to all of the shareholders of the time. And we recognized that opportunity of investing more into the Norton and LifeLog division inside Symantec as being an under-invested opportunity at the time. We established a company as the first consumer cyber safety company or cyber safety dedicated to consumers. Since then, many of our competitors have followed. We launched the first Nolan 360 in 2019 for a membership fee. Again, you can access to all of the innovations, and as the threat evolves, our portfolio evolves too, and you can access to all of the innovation. And as a result, we returned to organic growth. We invested more in marketing and created the flywheel of growth, investing into penetrating consumer cyber safety. In about three years, we moved from our install base being 0% of Northern 360 to 60% of the installed base being on that platform, Northern LifeLock. So strong from that success, we decided to push forward and expand it internationally and in different business model. We bought Avira that provided us a freemium model. mainly for the German market and some of the countries in Europe, and give us an access to a freemium model and trying to combine a premium and a freemium and define what that value would be for our customers. We branded our overall portfolio and developed a framework to manage a multi-brand environment that gave us access to more consumer segments than we had before. And then we launched on our platform the first cross-sell, up-sell platform activity in-app messaging that enables to identify the moment of truth, and at that moment, if you're not covered, giving you the opportunity to get access to protection of that risk. Success continued, and then we decided to merge with Avast, really scaling up what we had proven with the prior steps to really get to be the global leader in that consumer cyber safety environment. We scaled our large user base. We got freemium at scale, and we massively expanded geographically in a complementary way. And today, I feel Gen is the best position to go and continue to lead that transformation. Of course, as we transform from Symantec to Norton LifeLock to Gen, it's had some proof point and success in the marketplace. The competitive landscape became more and more dynamic. Obviously, consumer cyber safety anchored around the four needs, not just the old definition of device protection, was rapidly evolving and continues to be evolving. As I mentioned, it's not a mature market. We've seen our traditional competitors following some of those steps. We've seen a few startups coming in and trying to reposition their offering to tackle that user-centric view of the world. We've also seen other players coming from the market, whether it's big tech that started to focus on security, privacy, or even identity in different shape or form as part of their offering or in addition to their offering. We've seen other companies, insurance providers, financial institutions, also tackling the overall view of the digital users needed to be protected. Some of those competitors are also opportunities to partner with and reach out to more customers. Because at the end, our main competitor is really the hacker or the hacking community for which we compete to make sure we provide the best protection for our consumers. So this dynamic landscape actually confirmed our original assumption that there was something here to build around that consumer cyber safety market, and that our industry knowledge, which I called industry native, coming from that core protection was an advantage. And then the breadth of the portfolio, all the way to offering it as all in one, was an advantage over companies that had different missions but were tackling that problem in addition to the core business. So we were well positioned from that perspective. We're also well positioned because we've built up a diversified business. And the diversification really drives the value that we've been delivering. We're basically not dependent on a single factor or on a single platform. We run an omnichannel, very broad portfolio, and that enables us to balance the risks and the opportunities that we see in the market, and also evolve it as the consumer needs evolve. We have now a multi-brand formula, constantly refining it, but it helps us, along with the variety of business models we have from freemium to premium, to target new customer segments, customer segments that were actually out of reach everywhere single brand. So that diversification is absolutely essential for us to really understand where the market is going and position our portfolio at the right value for when the digital life is compromised. Of course, you can tell me diversification also bring complexity, and you have to be really crystal clear on how you manage your business operations. You're careful in your planning, careful in your prioritization. But I think as our results have shown, our team is really made up of discipline operator. I would say discipline operations is part of our DNA and enables us to manage the diversification we've built in our business. As we were expanding and building up GEN, we obviously expanded massively our user base. And it gave us, as we knew initially, a very strong competitive advantage. We know there are multiple benefits to have a large scale of users. And for us, initially, it gives us very strong visibility on all of the threats and the threat landscape that exists out there in which is in constant evolution. And it enables us to better address the customer needs to provide the mission. It informs the products strategy that Andre and the team are driving, and basically driving more innovation and more value back to the customers and the loop back to us. Five years ago, we had about 50 million customers on our platform, less than a million free users, cold trial. And we've massively expanded from there, 10 times that number. A lot of free users that give us all the benefit I've mentioned, and 65 million paid users. 40 million almost, certainly growing as you've seen our earnings report. Almost 40 million direct paid, and 40 million having adopted, and it's growing the membership benefit. And membership is very important because it gives a higher engagement and a higher utilization of all of the features in the platform, which then feeds back into the data that informs the quality and the evolution of the product. That customer base is also managed with a very strong focus on the health of the customer base. You've heard multiple times from Natalie that we are not going to be a lost leader trying to acquire a customer at a loss in a country and funded with a profit or another, just to be able to scale. Every cohort, every channel is managed in a positive economic view. And that helps between new and retained, also carries on value. It also provides cross-sell and up-sell opportunities as we move more to adoption of full cyber safety. It gives us a brand recognition. It gives us trust with the customer base awareness, which is all essential to drive more and more acquisition and bring more and more people to consumer cyber safety. And finally, that scale has enabled us to build what I think is the best service team in cyber safety for consumers. And that's an advantage for us too. It's an advantage in pre-sales. It's an advantage in post-sales as user experience always changes with the threat landscape. So we talked about the gen capabilities and assets that we put together. We talked about the diversification of the business structure that drives our value. And we've assembled that large customer footprint to enhance the opportunity. Now when you combine that with the customer lifetime value that's growing, we delivered a very strong, resilient, and predictable business. Like everything we do, we constantly learn, we refine, we adjust our framework. And as we stand today, sitting on a large, growing customer base, we've refined our customer journey to really drive the adoption of full cyber safety. Whether you enter it as a point product, and have different risks in your environment that you identified, you have the opportunity to be cross-sold, another value that would protect against that risk. Or if you enter at a membership level and have some protection but need to have a higher plan, a higher full, we know how to upsell to give you complete peace of mind. Or if you have multiple products, we also know when a membership is more favorable to you and able to move from cross-sold products up into the membership. And all of that leads to higher customer engagement, higher satisfaction, which ultimately gets us to very strong retention rates. You know, we have leading industry standards retention rate in the LifeLock brand, close to 90%, and Nathalie will walk you through the different retention rates we have by the different brands and the progress we are making there. The resilience and the predictability of the business is also important because it enables us, despite a high margin we have, to fund the innovation and the innovation plan that a product team is driving and be stubborn and persistent in going after those new spaces of digital cyber safety. So that's, in all, what drives the really strong, sustainable, growing, and highly profitable business model that today Gen is about. So our strong performance, obviously, is the result of that clear strategy, that vision, and how we assemble the assets together, but also combined with a very strong focus on execution. We've delivered, over the last four years, a mid-single-digit organic growth rate, 10% with acquisition. We always want more, but I can tell you in 2019, nobody was betting we would be what Gen is today. We've expanded the market. We've built our capabilities. We've increased our user 10x. And, of course, we have unmatched operating profit and profit margin. And with that, EPS grew double-digit at twice the rate of revenue. Now, we're constantly learning. We're refining our model. We're adjusting our approach. And that's what we're doing to then deliver what will be the next generation of cyber safety and another step towards our long-term vision. We feel we're really well positioned as GEN to lead that transformation of the market and capture the opportunity that's in front of us. The threat landscape is changing. There's no doubt about that. Multiple vector of threats. The market is dynamic and in expansion. We leverage our broad portfolio, our business models, very attractive units of economics. The value I've mentioned, we drive growth at the value. We have refined our competitive position. We have a large amount of data, a very broad portfolio. We have cross-sell and up-sell capabilities and proven execution. So we've built that resilience into the business, which gets us to the profitability, the cash structure, and ultimately the ability to maximize the shareholder value. Andre will walk you through the technology and the innovation and how that will drive the next step in our portfolio transformation. Now, our market position, our strategy, and our execution will support our financial commitment. We've built a strong track record of delivering on our commitment, of driving performance with the business. And I think you'll hear more from Natalie, but I think we've gained the credibility to say we'll do it again. After a year of integrating the two business together, we have some trends, and we believe we can sustain a mid-single-digit growth rate, and Nathalie will walk you through the different opportunities we have. We'll commit to grow EPS double-digit in 12% to 15%. And I think the only headwinds we've had as we delivered on all of our merger commitments was the cost of the debt. The interest rate at the time we signed the deal, as you know, it was 0%, and today it's a painful 5%. Natalie will unpack that for you, but we've built that into the new model of our EPS commitment moving forward. Of course, as a result of the cost of the debt, we'll commit also to deliver very quickly to get below three, which, again, for a business model that's that resilient, that predictable, delivering 60% margin feels absolutely reasonable. So we have a clear vision. We have a strong strategy. We have an effective execution. And combined, I think that's really the asset of Gen. Andre, I'll pass it to him. We'll walk you through the exciting piece to see how innovation is taking the portfolio moving forward. And then Natalie will walk around the value of that large customer base and how that translates into financials. And then I will wrap it up to see what's next as we go back to work this afternoon. Thank you.