Lifelock Skyrockets Following Q3 Earnings Report

Shares of

jumped more than 41 percent in after-hours trading after the company reported upbeat results for the third quarter and reached a deal with the FTC staff related to outstanding litigation. The Tempe, Arizona-based company posted a quarterly net loss of $65.1 million, or $0.68 per share, compared to net income of $5.5 million, or $0.06 per share, in the year-ago quarter. The latest quarter results included $96 million in pre-tax charge related to a proposed settlement with the FTC. Excluding items, the company's adjusted earnings came in at $0.28 per share. Its revenue climbed 24 percent to $152 million. However, analysts were expecting earnings of $0.25 per share on revenue of $147.36 million. The average estimate among 18 Estimize users was for earnings of $0.24 per share and revenue of $149.94 million. Consumer revenue rose 25 percent year-over-year to $144.6 million for the third quarter, while Enterprise revenue gained 5.6 percent to $7.3 million for the quarter. Adjusted EBITDA surged to $29.8 million from $17.9 million. At the end of the third quarter, the company had $332.2 million in total cash and marketable securities, compared to $326.0 million at the end of the second quarter of 2015. "We are pleased with our performance in the quarter, which reflected a 24% increase in revenues and strong gains in adjusted net income and Adjusted EBITDA," said Todd Davis, LifeLock's Chairman and CEO. Lifelock expects Q4 adjusted earnings of $0.28 to $0.30 per share, on revenue of $153 million to $155 million. Analysts projected earnings of $0.30 per share on revenue of $152.08 million. For FY15, the company projects adjusted earnings of $0.61 to $0.63 per share on revenue of $584 million to $586 million. Analysts expected a profit of $0.60 per share on revenue of $578.82 million. Lifelock shares climbed 41.38 percent to $13.70 in the after-hours trading session.