LIFELOCK, INC. - FORM 8-K - EX-99.1

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8-K - FORM 8-K - LIFELOCK, INC.	d728800d8k.htm

LIFELOCK

MAY 2014

EXHIBIT 99.1

Safe Harbor Statement

This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available

to us. Forward-looking statements include information concerning our possible or assumed future results of operations, financial goals,

business strategies, financing plans, competitive position, product development, membership growth, strategic and enterprise opportunities

and partnerships, marketing and advertising plans, industry environment, potential growth opportunities, potential market opportunities and

the effects of competition.

Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,”

“believes,” “could,” “seeks,” “estimates,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or

similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other

factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or

achievements expressed or implied by the forward-looking statements. Forward-looking statements represent our beliefs and assumptions only

as of the date of this presentation. You should read the documents that we file with the Securities and Exchange Commission (SEC), including

the risks detailed from time to time therein, completely and with the understanding that our actual future results may be different from what

we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons

actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in

the future.

This presentation includes certain non-GAAP financial measures as defined by SEC rules. As required by Regulation G, we have provided a

reconciliation of those measures to the most directly comparable GAAP measures, which is available in the Appendix.

Recent Business Highlights

•

Recorded the 36th consecutive quarter of sequential growth in revenue and cumulative

ending members.

•

Added approximately 344,000 gross new members in the first quarter of 2014 and

ended the quarter with approximately 3.22 million members.

•

Achieved a retention rate of 87.5% for the first quarter of 2014, compared with 87.2%

for the first quarter of 2013.

•

Increased

monthly

average

revenue

per

member

10%

$10.81

for

the

first

quarter

of 2014 from

$9.80

for the first quarter of 2013.

•

Launched

partnership

with

Vivint

one

the

largest

home

automation

services

providers

North

America,

that

will

provide

VivintTM

customers

the

ability

bundle

their new or existing service package with LifeLock’s identity theft protection

offerings.

•

Exceeded Q1 guidance on top and bottom line. Raised full year guidance on revenue,

Adj EBITDA, Adj EPS and free cash flow.

The Cost of Identity Fraud

MILLION

US victims of

identity fraud

in 12 month period**

BILLION

cost of

identity fraud

in US in 2012

***

MILLION

number of

records exposed by

data breach in 2013

****

data breach

notification recipients

became a fraud victim

Identity theft is the

#1 COMPLAINT

reported in the US

for the last 14 years

* Colleen Tressler, ‘Identity theft tops list of consumer complaints for 14th consecutive year,” Federal Trade Commission, Feb 27, 2014.

** Q32013; Identity Theft Tracking Study; a commissioned survey conducted July/August by Forrester Consulting on behalf of LifeLock for period ending July/August 2013.

*** The Bureau of Justice Statistics bulletin, Victims of Identity Theft, 2012 (December 2013)

**** Online Trust Alliance, 2014 Data Protection & Breach (2014)

The Increasing Risk of Identity Fraud

*2013 estimated users eMarketer (2013).

**Forrester research custom forecast for LifeLock (2013).

***2013 sales estimate. eMarketer (2013).

****FTC Consumer Sentinel Data Book for 2013 (2014). Based on the number of complaints filed with FTC.

***** A commissioned survey conducted by Forrester Consulting on behalf of LifeLock, Q4 2013. Incidence of social network usage, mobile devices for smart phone users, e-commerce sales.

BILLION

Social Network

Users

Incidence

Rate

*****

BILLION

Mobile

Devices**

Incidence

Rate

*****

TRILLION

E-Commerce

Sales

***

Incidence

Rate

*****

OF ALL

Reported

Claims

****

Concerned

About

Security

–

Million

30+ Million are doing something

40+ Million are doing nothing

Current Market Share

3 Million

Adults in US

240 Million

Income of $50K Plus

Enterprise Market Opportunity

216 Million

Transactions in 2013

3.4 Billion

Target Opportunity

Proactive Identity

Use Alerts

The LifeLock Ecosystem

Real-time ID

Scores

Technology

Platform

Predictive

Analytics

Data

Repository

Data growth builds

momentum

Member Data

Elements &

Authenticating

Responses

Cross-Industry

Data Elements

Growth Strategy

Take advantage of our unique ecosystem

Expand data inputs

Evolve targeting and messaging

Leverage mobile

Grow partner channel

Long Term Vision –

Identity Bureau

IDA Market: Leading Enterprises across a wide

range of industries

Wireless Providers

4 of the Top 5 Carriers

Credit Card Issuers

7 of the Top 10 Issuers

Retail Card Issuers

Over 75% Market Share

Alternative Lenders

Auto Lenders

Alternative Payments

Superior Performance From Differentiated Data

•

Over 1 trillion data elements

•

Over 2 billion high-value

consumer events

•

Unique data others don’t see

•

Over 3.3 million known identity frauds

•

Can score 100% of US adult population

Network:

real-time,

cross-industry

network

consumer behavioral data

A broad network of identity behavioral connections and linkages

provides deep insight into identity risk

Visibility into unusual identity

behavior such as high velocity

Uncovering Risk

Name

Phone

Date of Birth

Email Address

Address

SSN

Fraud Application

Application

Legend

Confirmed fraud connected to

identity elements

Enable the Enterprise, Empower the Consumer

ID Score: 721

Growth Strategy: 3.4 Billion Alertable Transactions

Expand the Core

580 Million

Penetrate Adjacent Markets

360 Million

Establish eCommerce Market

2.5 Billion

Market Opportunity

Product Evolution

LifeLock Consumer -3 Layers of Protection

Proactive alerts

that empower

consumers

24x7 Certified

resolution

specialists to

handle your case

Monitor over a

trillion data points

every minute of

every day

Live free in

an always

connected

world

SMS /

TEXT

Integrated

Voice

Response

Priorities

REACH

CONVERSION

Members

VIRALITY

MONETIZATION

Continuum Process

Myth #1: “My credit card protects me”

•

Narrow Visibility

•

Card

Fraud

Not

Identity

Protection

Credit Card

Myth #2: “I can do this by myself”

DIY

•

Limited DIY Steps

•

Not Realistic

•

Not Real Time

•

Not Effective

Myth #3: “Credit monitoring is good enough”

Credit Monitoring

•

Not Comprehensive

•

Speed Matters

•

Reactive Not Proactive

The LifeLock Difference…

Unique

Data

Superior

Technology

Trusted

Brand

Growth, Retention, Customer Satisfaction

Multi-Channel GTM Strategy

Direct To Consumer

Marketing

Partner Distribution

Channels

Television: A More Diverse Mix

Shifting Media Spend Towards Digital

2012

2013

2014 (est)

Online

Offline

Educate, Educate, Educate

A commissioned survey conducted in January 2014 by MSI International on behalf of LifeLock.

Base: Total Respondents (aware)

Q10b.

Imagine you were signing up for Security Identity Protection service. Which number best describes how likely you would be to consider the following companies? (10-point scale: 10=extremely likely

to consider; 1=not at all likely to consider)

Brand Leadership

Top Decile Net Promoter Score

Member Retention –

87.5%

Partner Overview

Co-Marketing

Embedded

Affiliates

Employee Benefits

Breach

Direct Response

2014 Partner Channel Growth

Strategic partner investments in 2014.

Profile:

Mid-Size Community Bank

Bank had $2.5 billion

in assets

Overview:

A commercial bank displaced

a credit monitoring offer

with LifeLock.

Financial Services Case Study

Credit

Monitoring

# of Members

LifeLock

1055

3738

LTV Revenue per Member

Credit

Monitoring

LifeLock

$415

$810

Team

Tenure

Experience

Don Beck

Ten Months

Involver, Postini, Adobe

Seth Greenberg

Eleven Months

Intuit, eHobbies

Mike Hargis

Seven Months

CareerBuilder, GE

Villi Iltchev

Ten Months

Salesforce, HP, Merrill Lynch

Larry McIntosh

Eight Years

Pepsi, McAfee

Jill Nash

Eleven Months

Levi Strauss,

Yahoo!, Gap Inc.

Charles Schwab

Steve Seoane

Three Years

ID Analytics, LexisNexis, Capital One

Connie Suoo

Four Years

Gateway, Experian

* 2014 Revenue and Adjusted EBITDA figures are based on the mid-point of the guidance provided in our Earnings Results call on April 30, 2014 for the full year ending December 31, 2014

Revenue and Adjusted EBITDA

Member Metrics

Revenue per Member

Rev/Mbr

YOY Growth

Rev/Member

YOY Growth

10%

12%

7.50

8.50

9.50

10.50

11.50

2010

2011

2012

2013

Q1 2014

Product Mix

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010

2011

2012

2013

2013 GNM

LifeLock Ultimate

LifeLock Command Center

Annual Retention Rate

Growing Lifetime Value

Member Base

New Members

2010

2011

2012

2013

COA

Fulfillment

Net LTV

2010

2011

2012

2013

COA

Fulfillment

Net LTV

Free Cash Flow

* 2014 Free Cash Flow is based on the mid-point of the guidance provided in our Earnings Results call on April 30, 2014 for the full year ending December 31, 2014

$(30.0)

$(10.0)

$10.0

$30.0

$50.0

$70.0

$90.0

2009

2010

2011

2012

2013

2014*

Free Cash Flow

Strong Balance Sheet

Dec 31, 2013

$Millions

Mar 31, 2014

$Millions

Cash and Marketable Securities

172.6

191.2

Goodwill & Intangible Assets

205.3

203.1

Deferred Tax Assets

49.1

52.7

Total Other Assets

36.3

40.0

Deferred Revenue

119.1

136.3

Debt

Total Other Liabilities

42.0

44.0

Stockholder’s Equity

302.2

306.7

Long Term Goals

2010

2011

2012

2013

Goals

Adj GM%

68%

71%

73%

75% -

77%

Adj S&M

48%

47%

44%

36% -

39%

Adj T&D

13%

10%

9% -

10%

Adj G&A

13%

7% -

Adj EBITDA

(3.2)%

6.4%

11.2%

11.4%

20% -

25%

FCF

(10)%

12%

15%

18%

18 –

23%

These goals are forward-looking, are subject to significant business, economic, regulatory, competitive, and other uncertainties and contingencies,

many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which

are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause

these variations, please consult the “Risk Factors” section in our filings with the Securities and Exchange Commission from time to time, including

our Form 10-K for the year ended December 31, 2013 . Nothing in this presentation should be regarded as a representation by any person that these

goals will be achieved and the Company undertakes no duty to update its goals.

SaaS + Internet + Security (128 companies)

Revenue >$100mm

115 companies

SaaS + Internet + Security

Revenue >$100mm

Revenue Growth >20%

Gross Margin >70%

EBITDA Margin >10%

FCF Margin >10%

10 companies

Key Investment Highlights

Large

and

growing

addressable

market

Leader

consumer

identity

theft

and

enterprise

fraud

protection

Industry

leading

service

offering

Strong

barriers

entry:

data,

analytics,

technology

platform,

and

brand

Experienced

management

team

with

track

record

execution

Predictable

subscription

model

Compelling

combination

growth,

profitability,

and

cash

flow

Appendix

GAAP to Non-GAAP Reconciliations

GAAP to Non-GAAP Reconciliations

Reconciliation

Cost

Services

Adjusted

Cost

Services

2010

2011

2012

2013

Cost

services

43.1

51.4

79.9

100.2

Share-based

compensation

(0.2)

(0.3)

(0.6)

(0.9)

Adjusted

Cost

Services

42.9

51.1

79.3

99.3

Reconciliation

Gross

Profit

Adjusted

Gross

Profit

2010

2011

2012

2013

Gross

Profit

110.8

131.3

6.5

269.4

Share-based

compensation

0.2

0.3

0.6

0.9

Adjusted

Gross

Profit

111.0

131.6

7.2

270.4

GAAP to Non-GAAP Reconciliations

Reconciliation

Technology

and

Development

Expenses

Adjusted

Technology

and

Development

Expenses

2010

201

2012

2013

Technology

and

development

expenses

21.3

17.7

29.5

Share-based

compensation

(0.8)

(1.7)

(3.8

)

Acquisition

expenses

Adjusted

technology

and

development

expenses

20.5

16.9

27.8

Reconciliation

Sales

and

Marketing

Expenses

Adjusted

Sales

and

Marketing

Expenses

201

2012

2013

Sales

and

marketing

expenses

78.8

1.2

3.0

162

Share-based

compensation

(0.7)

.1)

(1.9)

Adjusted

sales

and

marketing

expenses

78.1

0.5

1.9

161

GAAP to Non-GAAP Reconciliations

Reconciliation

General

and

Adm

inistrative

Expenses

Adjusted

General

and

Administrative

Expenses

2010

2011

2012

2013

General

and

administrative

expenses

23.3

17.5

24.6

44.1

Share-based

compensation

(1.5)

(3.3)

(8.1)

Acquisition

expenses

(0.6)

(0.7)

(1.0)

Adjusted

general

and

administrative

expenses

21.8

15.4

20.6

34.9

Components of Profit and Loss

Cost of Service

2013

% of Rev

Consumer revenue

340.1

92.0%

Enterprise revenue

29.5

8.0%

Total revenue

369.7

100.0%

Adj COS

99.3

26.9%

Adj GM

270.4

73.1%

Adj S&M

161.0

43.5%

Adj T&D

37.1

10.0%

Adj G&A

34.9

9.4%

Adj EBITDA

42.2

11.4%

Credit

Card Fees

Enterprise

Depn/Other

Member

Services

Fulfillment

Partners

(incl

Insurance)

Components of Profit and Loss

Sales and Marketing

2013

% of Rev

Consumer revenue

340.1

92.0%

Enterprise revenue

29.5

8.0%

Total revenue

369.7

100.0%

Adj COS

99.3

26.9%

Adj GM

270.4

73.1%

Adj S&M

161.0

43.5%

Adj T&D

37.1

10.0%

Adj G&A

34.9

9.4%

Adj EBITDA

42.2

11.4%

Production

Media

Enterprise

Personnel

Depn/

Other

Commissions

LIFELOCK, INC. - FORM 8-K - EX-99.1 - May 21, 2014

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