NortonLifeLock Inc

Norton LifeLock’s business has been adversely affected by the volatile forex environment and various macroeconomic pressures. The consumer base of the company is healthy, and its business is resilient which is why it was able to deliver an earnings beat despite failing to meet the revenue expectations of Wall Street. The company has received approval to acquire Avast, which will likely close in October 2022. New identity solutions were launched in the quarter and saw an increase in both geographic adoption and reach. The customer unit retention stays stable, and it continues to drive improvements to main cohorts with the inclusion of its newer customers. The company has launched various new offerings and has diversified its go-to-market channels. It has made inroads from its latest Norton Identity Advisory Plus launch in the UK market. The revenue of partners was up in the quarter and the management saw traction in its identity expansion efforts through its partners. This has driven robust development in its employee benefits channel and scaling vital international partnerships such as TELUS. We provide the stock of Norton LifeLock with a ‘Hold’ rating with a revision in the target price.