McAfee revenues rise 10% in Q3, lifted by 23% rise in consumer sales

Friday 20 November 2020 | 11:20 CET | News
McAfee, which returned to the market in October, reported a breakeven net profit for the third quarter to 26 September, on revenues up 10 percent from the year before to USD 728 million. Consumer revenue led growth, rising 23 percent to USD 395 million. Enterprise revenue meanwhile slipped lower to USD 333 million from 340 million. The adjusted EBITDA meanwhile lifted 26 percent to USD 265 million. 

McAfee ended the quarter with 17.3 million core direct-to-consumer subscribers, up by 2.4 million in the year and 669,000 in the quarter. Unlevered free cash flow increased to USD 464 million for the nine-months to end-September, against 285 million the year before, with the unlevered free cash flow for the period advancing to USD 639 million from 454 million. 

Looking ahead, CFO Venkat Bhamidipati said the company plans to distribute a dividend to its new investors and is targeting a longer-term leverage ratio under 3x of net debt to adjusted EBITDA. For the fourth quarter to 26 December, McAfee is guiding for revenues at USD 732-742 million and adjusted EBITDA at USD 254-264 million.

The company said it has used part of the proceeds from its IPO to pay down second lien debt of USD 525 million.

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Categories: Internet
Companies: McAfee
Countries: World
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