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GEN Nasdaq· Gen Digital Inc
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GEN Nasdaq· Gen Digital Inc
Earnings report Q4 2023

GEN Digital Inc. Reports Slight Revenue Increase Amid Economic Challenges

Segments of Revenue

GEN Digital Inc. reported a slight increase in net revenues, from $936 million in the previous year to $951 million. The company's direct customer revenues rose from $818 million to $837 million, while partner revenues increased from $95 million to $99 million. However, legacy revenues saw a decrease from $23 million to $15 million.

Strengths

The company's strength lies in its ability to increase direct customer and partner revenues despite economic challenges. The direct average revenue per user (ARPU) also increased from $7.09 to $7.21, indicating a stronger revenue generation from each customer. Moreover, the retention rate improved from 75% to 77%, suggesting better customer loyalty.

Challenges

The company's legacy revenues have decreased, indicating a potential weakness in this area. Additionally, the company faces potential risks from economic recessions and inflationary pressures, which could impact future revenues.

Noteworthy

The company's net income decreased from $165 million to $144 million, despite the increase in revenues. This could be due to increased operating expenses, which rose from $390 million to $434 million.

Summary

GEN Digital Inc. has shown resilience in the face of economic challenges, managing to increase its direct customer and partner revenues. However, the decrease in legacy revenues and net income, along with increased operating expenses, are areas of concern. The company will need to address these issues to ensure continued growth and profitability.

Source documents

Form 10-Q  filed on Feb 05, 2024
185 pages scanned

Reference data

Company financials Q4 revenue 951M
Analyst estimates Q4 EPS missed by -1.35%
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