 1
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com LIFELOCK
MAY 2014
EXHIBIT 99.1 |
 Safe
Harbor Statement ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 2
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 ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 3
•
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
by
10%
to
$10.81
for
the
first
quarter
of 2014 from
$9.80
for the first quarter of 2013.
•
Launched
a
partnership
with
Vivint
TM
,
one
of
the
largest
home
automation
services
providers
in
North
America,
that
will
provide
VivintTM
customers
the
ability
to
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 ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 4
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 ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 5
*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
*
7%
Incidence
Rate
*****
BILLION
Mobile
Devices**
8%
Incidence
Rate
*****
TRILLION
E-Commerce
Sales
***
7%
Incidence
Rate
*****
OF ALL
Reported
Claims
**** |
 Concerned
About
Security
–
78
Million
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 6
30+ Million are doing something
40+ Million are doing nothing
Current Market Share
3 Million |
 Adults
in US ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 7
240 Million
Income of $50K Plus |
 Enterprise Market Opportunity
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 8
216 Million
Transactions in 2013
3.4 Billion
Target Opportunity |
 Proactive Identity
Use Alerts
The LifeLock Ecosystem
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 9
Real-time ID
Scores
Technology
Platform
Predictive
Analytics
Data
Repository
Data growth builds
momentum
Member Data
Elements &
Authenticating
Responses
Cross-Industry
Data Elements |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 10
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
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 11
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
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com •
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
ID
Network:
A
real-time,
cross-industry
network
of
consumer behavioral data
12 |
 A broad
network of identity behavioral connections and linkages provides deep insight into
identity risk 13
Visibility into unusual identity
behavior such as high velocity
Uncovering Risk
-
Name
-
Phone
-
Date of Birth
-
Email Address
-
Address
-
SSN
-
Fraud Application
-
Application
Legend
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 20
9
41
17
Confirmed fraud connected to
identity elements
3 |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 14
Enable the Enterprise, Empower the Consumer
ID Score: 721 |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 15
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 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 16 |
 LifeLock Consumer -3 Layers of Protection
17
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com Proactive alerts
that empower
consumers
24x7 Certified
resolution
specialists to
handle your case
Monitor over a
trillion data points
every minute of
every day |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com Live free in
an always
connected
world
18
email
SMS /
TEXT
Integrated
Voice
Response |
 Priorities
19
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com REACH
CONVERSION
Members
VIRALITY
MONETIZATION
Continuum Process
1
2
3
4
$
$
$ |
 Myth
#1: “My credit card protects me” 20
•
Narrow Visibility
•
Card
Fraud
Not
Identity
Protection
Credit Card |
 Myth
#2: “I can do this by myself” 21
DIY
•
Limited DIY Steps
•
Not Realistic
•
Not Real Time
•
Not Effective |
 Myth
#3: “Credit monitoring is good enough” 22
Credit Monitoring
•
Not Comprehensive
•
Speed Matters
•
Reactive Not Proactive |
 The
LifeLock Difference… 23
Unique
Data
Superior
Technology
Trusted
Brand
Growth, Retention, Customer Satisfaction |
 Multi-Channel GTM Strategy
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 24
Direct To Consumer
Marketing
Partner Distribution
Channels |
 25
Television: A More Diverse Mix |
 Shifting Media Spend Towards Digital
26
2012
2013
2014 (est)
Online
Offline
$ |
 Educate, Educate, Educate
27 |
 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
28 |
 Top
Decile Net Promoter Score ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 29
Member Retention –
87.5% |
 Partner
Overview ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 30
Co-Marketing
Embedded
Affiliates
Employee Benefits
Breach
Direct Response |
 2014
Partner Channel Growth ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 31
Strategic partner investments in 2014. |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 32
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 |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 33
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 |
 34
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com * 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 |
 35
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com Member Metrics |
 Revenue
per Member ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 36
Rev/Mbr
YOY Growth
Rev/Member
YOY Growth
0%
2%
4%
6%
8%
10%
12%
7.50
8.50
9.50
10.50
11.50
2010
2011
2012
2013
Q1 2014 |
 Product
Mix ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 37
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010
2011
2012
2013
2013 GNM
LifeLock Ultimate
LifeLock Command Center |
 38
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com Annual Retention Rate |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 39
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 LifeLock Inc. 1-800-LifeLock
LifeLock.com 40
* 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 ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 41
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 |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 42
Long Term Goals
2010
2011
2012
2013
LT
Goals
Adj GM%
68%
68%
71%
73%
75% -
77%
Adj S&M
48%
47%
44%
44%
36% -
39%
Adj T&D
13%
9%
10%
10%
9% -
10%
Adj G&A
13%
8%
7%
9%
7% -
8%
Adj EBITDA
(3.2)%
6.4%
11.2%
11.4%
20% -
25%
FCF
(10)%
12%
15%
18%
18 –
23%
1
1
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) ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 43
Revenue >$100mm
115 companies |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 44
SaaS + Internet + Security
Revenue >$100mm
Revenue Growth >20%
Gross Margin >70%
EBITDA Margin >10%
FCF Margin >10%
10 companies |
 Key
Investment Highlights ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 45
Large
and
growing
addressable
market
Leader
in
consumer
identity
theft
and
enterprise
fraud
protection
Industry
leading
service
offering
Strong
barriers
to
entry:
data,
analytics,
technology
platform,
and
brand
Experienced
management
team
with
track
record
of
execution
Predictable
subscription
model
Compelling
combination
of
growth,
profitability,
and
cash
flow |
 ©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 46
Appendix |
 GAAP to
Non-GAAP Reconciliations ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 47
|
 GAAP to
Non-GAAP Reconciliations ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 48
Reconciliation
of
Cost
of
Services
to
Adjusted
Cost
of
Services
2010
2011
2012
2013
Cost
of
services
43.1
51.4
79.9
100.2
Share-based
compensation
(0.2)
(0.3)
(0.6)
(0.9)
Adjusted
Cost
of
Services
42.9
51.1
79.3
99.3
Reconciliation
of
Gross
Profit
to
Adjusted
Gross
Profit
2010
2011
2012
2013
Gross
Profit
110.8
131.3
19
6.5
269.4
Share-based
compensation
0.2
0.3
0.6
0.9
Adjusted
Gross
Profit
111.0
131.6
19
7.2
270.4 |
 GAAP to
Non-GAAP Reconciliations ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 49
Reconciliation
of
Technology
and
Development
Expenses
to
Adjusted
Technology
and
Development
Expenses
2010
201
1
2012
2013
Technology
and
development
expenses
21.3
17.7
29.5
40
.9
Share-based
compensation
(0.8)
(0.8)
(1.7)
(3.8
)
Acquisition
related
expenses
-
-
-
-
Adjusted
technology
and
development
expenses
20.5
16.9
27.8
37
.1
Reconciliation
of
Sales
and
Marketing
Expenses
to
Adjusted
Sales
and
Marketing
Expenses
20
10
201
1
2012
2013
Sales
and
marketing
expenses
78.8
9
1.2
12
3.0
162
.9
Share-based
compensation
(0.7)
(0.7)
(1
.1)
(1.9)
Adjusted
sales
and
marketing
expenses
78.1
9
0.5
12
1.9
161
.0 |
 GAAP to
Non-GAAP Reconciliations ©2014 LifeLock Inc.
1-800-LifeLock LifeLock.com 50
Reconciliation
of
General
and
Adm
inistrative
Expenses
to
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)
(1.5)
(3.3)
(8.1)
Acquisition
related
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
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 51
Cost of Service
2013
$M
% 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
©2014 LifeLock Inc. 1-800-LifeLock
LifeLock.com 52
Sales and Marketing
2013
$M
% 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 |