Life360 Reports Strong CY22 Financial Results

Highlights:

• Life360 (ASX:360) has reported its CY22 financial results with significant year-over-year (YoY) growth.
• The CY22 revenue was AU$ 228.3 million, meeting the guidance, and representing a 103% YoY increase.
• The net loss for CY22 was AU$ 91.6 million, while the Adjusted EBITDA loss was AU$ 40.1 million, both in line with the guidance.

Life360 Reports Strong Growth in Global MAU and ARPPC, with Positive Q4'22 Results. The Family safety membership service provider, Life360, has reported its unaudited financial results for the year ending December 31, 2022. The company's CEO, Chris Hulls, has announced that they achieved the largest annual global MAU growth of almost 50 million, solidifying their position as the market-leading family safety membership service.

Record Growth in Monthly Active Users

In 2022, Life360 experienced strong growth in its global monthly active users (MAU), which increased by 37% YoY to 48.6 million. The company added a record 13.1 million net new users in CY22, with the US and International markets both contributing significantly. The International MAU saw the strongest growth, increasing by 49%, while the US MAU grew by 31%.

Positive ARPPC Growth

Paying Circles also increased by 23% YoY, with international markets showing the highest growth rate of 48%. Despite significant price increases for new members, US Paying Circles increased by 17% YoY. Cumulative new and upsell subscribers in the Membership plans were 816 thousand, up 45% YoY. CY22 Global ARPPC accelerated by 19% YoY, reflecting US price increases late in the period, while International ARPPC increased by 4% YoY.

Operational Highlights:

• In Q4 '22, Life360 reported a positive Adjusted EBITDA of AU$ 1.6 million, which was an improvement from the AU$ 9.4 million Adjusted EBITDA loss in Q3.
• The positive result was attributed to strong subscription revenue growth, cost efficiencies realized in H1'22, and a seasonal uplift in hardware sales.
• For CY23, Life360 anticipates delivering core subscription revenue growth of over 50% YoY (excluding Tile and Jiobit), hardware revenue growth of 0% to 5%, and other revenue of approximately AU$ 26 million.
•  The company expects to achieve consolidated revenue of AU$ 300 million to AU$ 310 million and positive Adjusted EBITDA
• Operating Cash Flow of AU$ 5 million to AU$ 10 million, with positive results anticipated on a quarterly basis beginning in Q2 '23 and for the full CY23.

Expansion Plans:

Life360 has plans to expand its services and grow its user base even further in the coming years. The company plans to launch a new product, Life360 Driver Protect, which will offer additional driver safety features, including crash detection and emergency response services. The company also plans to expand its presence in international markets, particularly in Europe and Asia, where it sees significant growth opportunities.

Conclusion:

Life360's CY2022 results show that the company continues to execute on its mission of providing families with peace of mind. With strong revenue and user growth, a successful monetisation strategy, and plans to expand its services and grow its user base, the company is well positioned for continued success in the coming years.

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