LifeLock (LOCK) Appoints New CEO; Offers Prelim. FY15 Results

LifeLock, Inc. (NYSE: LOCK) announced that Hilary Schneider, the company’s president, will succeed Todd Davis as chief executive officer, effective March 1, 2016. On that date, Davis, a founder of the company, will become executive vice chairman of the board and Roy C. Guthrie, the company’s lead director, will become chairman. Guthrie has served on the LifeLock board since October 2012. Ms. Schneider will also be appointed to the board.

“On behalf of the board, I would like to congratulate Hilary on this appointment and thank Todd for his extraordinary contributions to LifeLock over the years, including the groundwork he laid for a smooth succession,” Guthrie said. “Under Todd’s leadership, the company has grown from a startup into a thriving organization that continues to set the standard for identity theft protection, and we are pleased that he will continue to serve the company as executive vice chairman.

“As LifeLock’s president for the past three years, Hilary has been instrumental in establishing a foundation for LifeLock’s future success, leading the company’s efforts to enhance its processes, systems, and products. She is a highly talented technology executive with the experience and vision to lead continued value creation at the company,” concluded Guthrie.

“With LifeLock well positioned for continued success, the FTC matter concluded, and Hilary ready to assume the role of CEO, this is the right time to move forward with this succession plan,” said Davis. “The commitment of the LifeLock team to protecting our members’ identities continues to fuel our momentum. Today we are announcing preliminary financial results for the fourth quarter of 2015 showing our 43rd consecutive quarter of sequential revenue growth, with total revenue increasing by double digits.

“Hilary is deeply committed to our mission. She has an exceptional understanding of technology, and a compelling strategic vision for the company. I am confident that LifeLock will continue to reach new heights under her leadership. I look forward to continuing to work with Hilary, Roy and the rest of our board in my ongoing role as executive vice chairman,” Davis concluded.

"It is an honor to succeed Todd as CEO of LifeLock and I am excited about our company’s future," said Schneider. “Only a few years ago, online identity was a name, address, and Social Security number; today, it is the highly detailed picture created by a consumer’s engagement on social media, online and mobile shopping and banking, and the records that doctors, corporations and others store online. The work we are doing to enhance our organization and operate according to the highest standards in all we do will help us establish LifeLock as not only the most trusted identity theft solution provider in the industry, but also the leader in helping consumers holistically manage their online identity. As we progress toward these goals, we will become an even more important partner to our members and generate increasing value for our shareholders.”

Schneider has been LifeLock’s president since she joined the company in 2012. Prior to joining LifeLock, Schneider served for six years as executive vice president Yahoo!, Americas, where she was responsible for Yahoo!’s North and South American business, reporting directly to the chief executive officer. She has also held senior leadership roles at Knight Ridder, Inc., where she was chief executive officer of Knight Ridder Digital and ultimately co-managed the company’s overall newspaper and online business. Before that, she was president and chief executive officer of Red Herring Communications, overseeing Red Herring Magazine, RedHerring.com and Red Herring’s events unit, and served in a number of roles at Times Mirror, including president and chief executive officer of Times Mirror Interactive and general manager of the Baltimore Sun. Earlier in her career she was vice president of corporate finance at Drexel Burnham Lambert.

Schneider currently serves on the board of directors of Vail Resorts, Inc.; Rent Path; and Water.org. She holds a bachelor’s degree in economics from Brown University and an M.B.A. from Harvard Business School.

Preliminary Results

Separately, the company announced preliminary results for full year 2015:

• Total revenue in the range of $586 million to $587 million, versus $476 million for 2014 and guidance of $584 million to $586 million for 2015 provided in connection with the announcement of the company’s third quarter 2015 earnings on October 28, 2015;
• Adjusted net income per diluted share in the range of $0.62 to $0.63 based on 100.2 million weighted-average shares outstanding, versus 2014 adjusted net income per diluted share of $0.48 based on weighted average shares outstanding of 99.1 million and guidance of $0.61-$0.63;
• Adjusted EBITDA of between $72 million to $73 million versus $55.5 million for 2014 and guidance of $71 million to $73 million;
• Free cash flow of $88-$89 million versus $89.6 million last year and guidance of $95 million to $100 million for 2015. Free cash flow was impacted by approximately $3 million for prepaid marketing expenses expected to occur during the first quarter of 2016 and an approximately $4 million increase in accounts receivable, of which the majority we expect to collect by January 31, 2016.

The Street sees FY15 revenue of $584.9 million and EPS of $0.62.

The above information is preliminary and subject to completion of quarter-end financial reporting processes and reviews. LifeLock expects to release final fourth quarter and fiscal 2015 financial results after the market close on February 10, 2016.

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