McAfee Corp (NASDAQ: MCFE) stock rose over 7.6% on August 11th, 2021 (as of 11:06:11 AM UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the second quarter of FY 21. In Q2, the company has added organically another industry-leading 556,000 net new core direct-to-consumer subscribers, or DTC, to the platform, closing the quarter at a cumulative 19.4 million versus 16.6 million core DTC subscribers in the same period last year. Direct-to-consumer revenue contributed $344 million, which represents an increase of 17% over the same period last year, continuing a strong double-digit growth trend. The company has also continued to see strong demand for indirect and partner-led business, which includes mobile providers, ISPs, search, retail, and e-commerce partners. The revenue from indirect and partner-led channels, which is a mix of both subscription and non-subscription, contributed $123 million, an increase of 38% over the same period last year. This increase was primarily driven by the outperformance of the non-subscription business.
In the second quarter, the company had signed a multi-year extended agreement to McAfee’s long-standing partnership with Samsung to protect Samsung PC users’ personal data against online threats worldwide via our McAfee LiveSafe product. Meanwhile, on May 31, the German antimalware test lab, AV-TEST, awarded McAfee’s Total Protection Top Product Certification for the sixth consecutive time. Further, on June ’21, AV Test also awarded McAfee’s mobile security for Android a perfect score for the seventh consecutive time.
MCFE in the second quarter of FY 21 has reported the adjusted earnings per share of 21 cents, beating the analysts’ estimates for the adjusted earnings per share of 18 cents. The company had reported the adjusted revenue growth of 22 percent to $467 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $433.99 million. Adjusted EBITDA for the quarter was $218 million, which is up 38% versus the same period last year, representing a margin of 47%. The adjusted EBITDA for the period included stranded costs of $21 million. As a percentage of revenue, adjusted gross margins for the second quarter has expanded by approximately 200 basis points year over year due to product mix and cost of sales efficiencies. Adjusted operating margins expanded by approximately 600 basis points as a percentage of revenue.
Additionally, the company ended the second quarter with $420 million in total company cash and cash equivalents. MCFE has declared a regular dividend in the amount of $0.115 per Class A common share on June 10th, 2021, and paid it on July 9th, 2021.