LifeLock’s less-than-stellar IPO is just a temporary setback, the company's CEO told CNBC on Wednesday, adding that the company still had “tremendous” growth opportunities.
In a world where identity theft is becoming more common, CEO Todd Davis insisted the three percent drop in LifeLock’s shares on its New York Stock Exchange trading debut doesn’t reflect the company’s potential. The fraud protection company’s initial public offering priced at $9 per share, but it quickly stumbled out of the gate to slide four percent in afternoon trading.
“This is one day, a moment in time,” said Davis, who started the company back in 2005, “All we have to do now is go out and execute and I love that because we’ve done it for 29 consecutive quarters of cumulative growth” in revenues, he said.
Davis once famously took out advertising that prominently displayed his Social Security number in a bid to demonstrate LifeLock’s security, effectively challenging someone to hack his personal information.
Several people quickly took him up on the dare, resulting in Davis having his identity stolen at least 13 times.
“I don’t regret it because it brought awareness to the fact that we all give out our social security number” to employers and service providers, Davis said. “You give it out, but what are you doing to protect it?”
The CEO told CNBC that “everyone is susceptible to being a victim,” regardless of age, gender, or financial position. He added that LifeLock’s target market was the 78 million working adults in the U.S. who need to better safeguard their identity.
“We’re going to go educate those folks and we see a tremendous addressable market for people hungry for a solution that is proactive,” he said.
Davis was dismissive of traditional credit monitoring companies, calling them “very limited in their scope and reactionary,” Davis said. “They will tell you days or weeks later, after there’s been an account opened. We deem that as a home alarm system that will tell you days or weeks later” about a break in, he added.
—By CNBC.com’s Javier E. David
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