Online protection company McAfee announced financial results for the second quarter. According to the announcement, core direct-to-consumer subscribers increased by 17% to 19.4 million. Net cash from operating activities also grew 62% year-over-year to $189 million.
Third-quarter outlook
The company also announced the expected financial guidance for the third quarter. According to the new outlook, the net revenue expectation is increased to $467 million from $461 million. For the full year that will end on December 25, net revenue increased from $1,840 million to $1,850 million. Some of the second quarter highlights are:
- Net revenue was $467 million, reflecting a 22% growth year-over-year
- Net Income of $108 million or a Net Income Margin of 23%, as compared to $22 million or a Net Income Margin of 6% in the year ago period
- Adjusted EBITDA of $218 million or a 47% Adjusted EBITDA Margin, inclusive of approximately $21 million stranded costs
- McAfee’s combined Net cash provided by operating activities was $189 million for the quarter, up 62% year-over-year
- McAfee’s combined Unlevered Free Cash Flow was $233 million for the quarter, up 29% year-over-year
Peter Leav, President and Chief Executive Officer of McAfee said,
“We are very pleased with our team’s execution this quarter. Not only did McAfee deliver another solid quarter with revenue, DTC subscribers, profitability and cash flow from operations growing double-digits, but did so while simultaneously closing the transaction to sell the Enterprise Business. Our continued commitment to secure our customers’ online footprint helped us to drive 22% year-over-year consumer revenue growth while we added 556,000 net new direct-to-consumer subscribers in Q2. We look forward to continuing our journey as a pure-play consumer business.”