Gen Digital Inc (GEN) Reports 27% YoY Increase in Q2 FY24 Revenue, Confirms Annual Guidance
Gen Digital Inc (NASDAQ:GEN) reports Q2 FY24 GAAP revenue of $948 million, up 27% YoY.
Q2 GAAP diluted EPS stands at $0.23, compared to $0.12 a year ago.
Operating margin for the quarter was 2.6%, down 30 points YoY.
Company confirms annual guidance within the range for FY24.
Gen Digital Inc (NASDAQ:GEN), a global leader in Digital Freedom, released its fiscal year 2024 second quarter results on November 7, 2023. The company reported a significant increase in revenue and diluted EPS, while the operating margin saw a dip.
Financial Highlights and Commentary
For Q2 FY24, Gen Digital Inc (NASDAQ:GEN) reported GAAP revenue of $948 million, marking a 27% increase YoY. The GAAP diluted EPS for the quarter was $0.23, a significant rise from $0.12 a year ago. However, the GAAP operating margin was 2.6%, down 30 points YoY. The operating cash flow for the quarter was $125 million.
On a non-GAAP basis, the company reported a revenue of $948 million, up 27% in USD and 28% in CC. The operating income stood at $549 million, up 41% in USD and 43% in CC. The operating margin was 57.9%, up 600 basis points. The diluted EPS was $0.47, up 4% in USD and up 9% in CC.
Our Q2 results demonstrate the Gen teams consistent commitment to driving sustainable and profitable growth, said Natalie Derse, CFO of Gen. In Q2 we returned to sequential customer count growth up 380,000 while we also grew ARPU and improved retention. We see a great opportunity to continue this momentum, further extending our market leadership in Cyber Safety and driving significant value for our customers and shareholders.
Q3 FY24 Non-GAAP Guidance and Annual Guidance
For Q3 FY24, Gen Digital Inc (NASDAQ:GEN) expects the revenue to be in the range of $950 to $960 million and the EPS to be in the range of $0.49 to $0.51. For the fiscal year 2024, the company expects the revenue to be in the range of $3.810 to $3.835 billion and the EPS to be in the range of $1.95 to $2.00.
Quarterly Cash Dividend
Gen's Board of Directors has approved a regular quarterly cash dividend of $0.125 per common share to be paid on December 13, 2023, to all shareholders of record as of the close of business on November 20, 2023.
Financial Tables Summary
As of September 29, 2023, Gen Digital Inc (NASDAQ:GEN) reported total assets of $16.411 billion, with total liabilities standing at $13.997 billion. The total stockholders equity (deficit) was reported to be $2.414 billion. The net income for the three months ended September 29, 2023, was $149 million, with a diluted net income per share of $0.23.
The company's operating activities provided a net cash of $125 million for the three months ended September 29, 2023. The investing activities provided a net cash of $9 million, while the financing activities used a net cash of $135 million. The ending cash and cash equivalents for the period stood at $629 million.
Explore the complete 8-K earnings release (here) from Gen Digital Inc for further details.
This article first appeared on GuruFocus.
