During fiscal 2024, the company increased net Direct customers by 0.9 million, increased monthly Direct ARPU by $0.15, and increased the Direct retention rate by 1%.

During fiscal 2024, the company repurchased 21 million shares of common stock for $441 million, paid out $323 million in quarterly dividends, and carried out $1.183 billion in debt pay downs, including $950 million in voluntary prepayments applied exclusively to the Term B facility.

The acquisition of Avast contributed significantly to the increase in net revenues, with an additional five and a half months of revenue contribution amounting to $419 million.

The company actively managed its capital structure by making voluntary prepayments on its Term B facility and repurchasing shares, demonstrating a focus on both debt reduction and returning value to shareholders.

Operating income decreased primarily due to an increase in legal accrual related to ongoing litigation and an increase in amortization of intangible assets recognized as a result of our acquisition of Avast. This is partially offset by the cost synergies post-acquisition.

The company continues to focus on operational efficiencies to reduce greenhouse gas emissions and reduce the environmental footprint of products.

The company expects to continue to be a target of attacks specifically designed to impede performance and availability of offerings and harm reputation. These attacks may target partners, suppliers, vendors or customers.

The company collects, uses, discloses, stores or otherwise processes personal information, which subjects it to privacy and data security laws and contractual commitments. Changes to applicable privacy or data security laws could limit the effectiveness of solutions or the ability to develop new solutions.

The company's Norton branded endpoint security solution relies on certain threat analytics software engines and other software (the Engine-Related Services) that have been developed and provided by engineering teams that have transferred to Broadcom as part of the Broadcom sale. If Broadcom fails to deliver these Engine-Related Services it would result in significant business disruption.

The company operates in intensely competitive and dynamic markets that experience frequent and rapid technological developments, changes in industry and regulatory standards, evolving market trends, changes in customer requirements and preferences, and frequent new product introductions and improvements.

The company faces competition from a broad range of companies, including software vendors focusing on cyber safety solutions, operating system providers such as Apple, Google and Microsoft, and companies that currently specialize in one or a few particular segments of the market and many of which are expanding their product portfolios into different segments.

The company has incorporated, and are continuing to develop and deploy, Al into many of our products, solutions and services. Al presents challenges and risks that could affect our products, solutions and services, and therefore our business.

Cost of revenues increased $142 million, primarily due to a $93 million increase in the amortization of acquired intangible assets, a $29 million increase in revenue share costs, and a $18 million increase in payment processing fees as a result of higher billings.

General and administrative expense increased $318 million, primarily due to a $388 million increase in legal accrual, of which $290 million is related to our litigation case with the Trustees of Columbia University in the City of New York (Columbia) and the corresponding legal fees.

Restructuring and other costs decreased $12 million, primarily due a $10 million decrease in stock-based compensation expense.

Research and development expense increased $19 million, due to a $10 million increase in headcount and outside services and a $10 million increase in cloud hosting costs.

Cybercrime encompasses any crime committed with devices over the internet and includes crimes where (i) malicious software or unauthorized access is detected on a device, network or online account.

Cybercriminals have not only expanded their reach, but the sophistication of digital threats and attacks are becoming increasingly more realistic and believable. The advancement of Al and large language model (LLM) technology is a key driver of this.

In May 2024, our Board of Directors authorized a new stock repurchase program through which we may repurchase shares of our common stock in an aggregate amount of up to $3 billion with no fixed expiration.

During fiscal 2024, we carried out $1.183 billion in debt pay downs, including $950 million in voluntary prepayments applied exclusively to the Term B facility.

Capital expenditures remain relatively stable, with $20 million in payments for acquisitions, net of cash acquired.

Building a brand centered on trust is critically important to our business success, and our focus on ESG helps us earn trust from our customers, employees, investors and shareholders. As such, ESG topics are core to our business strategy.

Governance covers many core operating principles overseen by the Nominating and Governance Committee of our Board of Directors. This committee has oversight of ESG program and receives quarterly updates on topics such as diversity, ethics, community investment and the environment.

The focus from regulators, customers, certain investors, employees, and other stakeholders concerning environmental, social and governance (ESG) matters and related disclosures, both in the United States and internationally, has resulted in, and is likely to continue to result in, increased general and administrative expenses and increased management time and attention spent complying with or meeting ESG-related requirements and expectations.

Our results of operations and cash flows are subject to fluctuations due to inflation, changes in foreign currency exchange rates relative to U.S. dollars, our reporting currency, changes in interest rates, as well as recession risks, any of which may persist for an extended period.

Volatile market conditions related to geopolitical conflicts and other macroeconomic events have, at times, affected our results of operations and cash flows in non-material ways; however, geopolitical conflicts and other macroeconomic events may in the future materially impact our results of operations and cash flows.

Government efforts to combat inflation, along with other interest rate pressures arising from an inflationary economic environment, have led to higher financing costs.