EX-99.1

EX-99.1 2 d767702dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

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Exhibit 99.1

LIFELOCK

AUGUST 2014

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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.

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Recent Business Highlights

Launched next evolution of our service suite – LifeLock Standard, LifeLock Advantage, and LifeLock Ultimate Plus.

With LifeLock Ultimate Plus offering, LifeLock is the only identity theft company to provide alerts across a consumers’ financial lives including credit cards, checking, savings, and investment accounts.

Recorded the 37th consecutive quarter of sequential growth in revenue and cumulative ending members.

Added approximately 304,000 gross new members in the second quarter of 2014 and ended the quarter with approximately 3.39 million members.

Achieved a retention rate of 87.2% for the second quarter of 2014, in excess of 87% for 7 consecutive quarters.

Increased monthly average revenue per member to $10.99 for the second quarter of 2014 from $10.18 for the second quarter of 2013.

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The Cost of Identity Theft

14.9 $25

MILLION BILLION

US victims of Identity theft is the cost of

identity theft identity fraud

in 12 month period** #1 COMPLAINT in US in 2012***

reported in the US

823 for the last 14 years* Every 3

MILLION seconds

number of

records exposed by Someone becomes a victim

data breach in 2013**** of identity theft**

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)

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The Increasing Risk of Identity Fraud

1.7 7.0 1.3 17%

BILLION BILLION TRILLION OF ALL

Social Network Mobile E-Commerce Reported

Users* Devices** Sales*** Claims****

7% Incidence Rate***** 8% Incidence Rate***** 7% Incidence Rate*****

*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.

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Concerned About Security – 78 Million

30+ Million are doing something 40+ Million are doing nothing

Current Market Share

Million

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Adults in US

240 Million

Income of $50K Plus

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Enterprise Market Opportunity

216 Million

Transactions in 2013

3.4 Billion

Target Opportunity

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The LifeLock Ecosystem

Predictive

Analytics

Data

Repository

Technology

Platform

Member Data

Elements &

Authenticating

Responses

Proactive Identity

Use Alerts

Real-time ID

Scores

Cross-Industry

Data Elements

Data growth builds momentum

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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

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IDA Market: Leading Enterprises across a wide range of industries

Wireless Providers Credit Card Issuers Retail Card Issuers

of the Top 5 Carriers 7 of the Top 10 Issuers Over 75% Market Share

Alternative Lenders Auto Lenders Alternative Payments

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Superior Performance From Differentiated Data

ID Network: A real-time, cross-industry network of

consumer behavioral 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

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Uncovering Risk

A broad network of identity behavioral connections and linkages provides deep insight into identity risk

Legend

- SSN

- Name

- Address

- Phone

- Date of Birth

- Email Address

- Application

- Fraud Application

Confirmed fraud connected to

identity elements

41 3

Visibility into unusual identity

behavior such as high velocity

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Enable the Enterprise, Empower the Consumer

ID Score: 721

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Growth Strategy: 3.4 Billion Alertable Transactions

Market Opportunity

Expand the Core Penetrate Adjacent Markets Establish eCommerce Market

580 Million 360 Million 2.5 Billion

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Product Evolution

LifeLock Basic LifeLock

$10 month Standard

$9.99

LifeLock Command Center

$15 month LifeLock

Advantage

$19.99

LifeLock Ultimate

$25 month LifeLock

Ultimate Plus

$29.99

LifeLock Junior

$5.99 month

LifeLock

Mobile

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New Product Lineup

LifeLock Standard LifeLock Advantage LifeLock Ultimate Plus

$9.99 $19.99 $29.99

All features in our basic All features in LifeLock All features in our LifeLock

LifeLock service, plus: Standard, plus: Advantage service plus:

Enhanced insurance Credit card, checking Sex Offender Reports

policy that underwrites and savings account Investment account

our service guarantee alerts activity alerts

Online annual credit Online annual Tri-bureau

report and score credit report and score

Data breach Tri-bureau credit inquiry

notifications activity monitoring

Court records scanning Monthly credit score

Fictitious identity tracking

scanning Bank Account Takeover

Alerts

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LifeLock Consumer -3 Layers of Protection

DETECT ALERT RESTORE

Monitor over a

trillion data points

every minute of

every day

Proactive alerts

that empower

consumers

24x7 Certified

resolution

specialists to

handle your case

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Live freely in an always connected world

SMS / TEXT

Integrated

Voice Response

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Priorities

Continuum Process

REACH 4 VIRALITY

$ $ $

Members

CONVERSION 3 MONETIZATION

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Myth #1: “My credit card protects me”

Credit Card

Narrow Visibility

Card Fraud Not Identity Protection

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Myth #2: “I can do this by myself”

DIY

Limited DIY Steps Not Realistic Not Real Time Not Effective

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Myth #3: “Credit monitoring is good enough”

Credit Monitoring

Not Comprehensive

Speed Matters

Reactive Not Proactive

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The LifeLock Difference…

Unique Superior Trusted

Data Technology Brand

Growth, Retention, Customer Satisfaction

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Multi-Channel GTM Strategy

Direct To Consumer Marketing

Partner Distribution Channels

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Television: A More Diverse Mix

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Shifting Media Spend Towards Digital

2012 2013 2014(est)

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Educate, Educate, Educate

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Brand Leadership

45% 42% % who said that, if they were signing up, they’d

40% consider this brand

35%

30%

25%

20%

15% 11% 11%

9% 8% 8%

10% 7% 7% 6%

5% 5% 4%

A commissioned survey conducted in June 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)

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Top Decile Net Promoter Score

Member Retention – 87.2%

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Partner Overview

Co-Marketing

Direct Response Embedded

Affiliates

Employee Benefits

Breach

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2014 Partner Channel Growth

Strategic partner investments in 2014.

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Financial Services Case Study

Profile:

Mid-Size Community Bank Bank had $2.5 billion in assets

Overview:

A commercial bank displaced a credit monitoring offer with LifeLock.

# of Members

1055

3738 LifeLock

LTV Revenue per Member

$415 Credit

Monitoring

$810 LifeLock

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Revenue and Adjusted EBITDA

Revenue ($M)

500.0

400.0

300.0

200.0

100.0

2010 2011 2012 2013 2014*

Consumer Enterprise

Adjusted EBITDA ($M)

60.0

50.0

40.0

30.0

20.0

10.0

2010 2011 2012 2013 2014*

(10.0)

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

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Member Metrics

Gross New Members

1,000 944

800 762

704

648

600 517

480

400

200

2010 2011 2012 2013 YTD 2014*

Cumulative Ending Members

3.4

3.2

3.0

2.8

2.6

2.4

2.2

2.0

1.8

1.6

2010 2011 2012 2013 2014

For the six month period ended June 30, 2014

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Revenue per Member

11.50 12%

10%

10.50

9.50 6%

8.50

7.50 0%

2010 2011 2012 2013 YTD 2014*

ARPU YOY Growth

For the six month period ended June 30, 2014

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Product Mix

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

2010 2011 2012 2013 YTD 2014 GNM*

LifeLock Ultimate LifeLock Command Center

LifeLock Basic LifeLock for Minors/LifeLock Junior

For the six month period ended June 30, 2014

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Annual Retention Rate

90.0%

87.8%

87.1% 87.2%

85.0%

82.7%

80.0% 79.1%

75.0%

70.0%

2010 2011 2012 2013 Q2 2014

100% 2013 Cohort Aging

95% 93.1% 93.7%

90.5% 91.7%

89.1%

90% 87.1%

85% 82.1%

80%

75%

70%

2 3 4 5 6 7

# of Years a Member

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Growing Lifetime Value

Member Base

2010 2011 2012 2013

COA Fulfillment Net LTV

New Members

2010 2011 2012 2013

COA Fulfillment Net LTV

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Free Cash Flow

$90.0

$70.0

$50.0

$30.0

$10.0

2009 2010 2011 2012 2013 2014*

$(10.0)

$(30.0)

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

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Strong Balance Sheet

Dec 31, 2013 June 30, 2014

$Millions $Millions

Cash and Marketable Securities 172.6 216.0

Goodwill & Intangible Assets 206.6 202.1

Deferred Tax Assets 47.9 53.4

Total Other Assets 36.2 42.4

Deferred Revenue 119.1 148.8

Debt — -

Total Other Liabilities 42.0 53.3

Stockholder’s Equity 302.2 311.8

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Long Term Goals

2010 2011 2012 2013 LT Goals1

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 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 and Form 10-Q for the period ended June 30, 2014. 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.

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SaaS + Internet + Security (128 companies)

Revenue >$100mm 115 companies

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SaaS + Internet + Security

Revenue >$100mm Revenue Growth >20% Gross Margin >70% EBITDA Margin >10% FCF Margin >10%

10 companies

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Key Investment Highlights

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

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Appendix

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GAAP to Non-GAAP Reconciliations

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GAAP to Non-GAAP Reconciliations

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GAAP to Non-GAAP Reconciliations

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GAAP to Non-GAAP Reconciliations

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Components of Profit and Loss

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%

Cost of Service

Enterprise

Depn/Other

Credit

Card Fees

Fulfillment

Partners

(incl

Member Insurance)

Services

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Components of Profit and Loss

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%

Sales and Marketing

Enterprise Production

Depn/

Other

Commissions

Media