Life360 Surges with Q3 Success and Allkem Secures FIRB Approval

Life360 Q3 2023 Highlights:

• Robust Financial Performance: Life360, Inc. (ASX: 360) reported a total Q3’23 revenue of AU$78.6 million, indicating a YoY increase of 38%. Core Life360 Subscription revenue reached AU$50.6 million, up 50% YoY.
• Subscriber Growth: Global Paying Circles surged by 17% YoY, with a net quarterly addition of 118 thousand subscribers—Life360's largest-ever Q3 growth.
• Positive Financial Indicators: The company achieved Positive Adjusted EBITDA of AU$5.5 million, marking the third consecutive quarter of positive Adjusted EBITDA. Operating Cash Flow was positive at AU$4.1 million, the second consecutive quarter in positive territory.
• Revenue Guidance: Life360 reiterated its CY23 guidance, anticipating more than 50% YoY growth for core Life360 subscription revenue and consolidated revenue in the range of $300 million - AU$310 million. Positive Adjusted EBITDA guidance increased to AU$12 million - AU$16 million from AU$9 million - AU$14 million.
• International Expansion: The impressive subscriber growth, particularly in English-speaking countries like Canada, the UK, and Australia, lays the foundation for Life360's international expansion. The Triple Tier Membership offering, which recently went live in the UK, is slated for rollout in Australia in the first half of CY24.

CEO Chris Hulls' Perspective:

Life360's CEO, Chris Hulls, expressed satisfaction with the exceptional quarter, highlighting the record subscriber additions and the significant growth in international markets. Hulls emphasized the company's confidence in the international rollout, with the UK already reflecting positive results and Australia planned for CY24. The CEO pointed out the sustained growth in predominantly English-speaking countries, contributing to a 52% YoY increase in Paying Circles.

Tile Membership Success and Hardware Revenue Growth:

The bundling of Tile Membership has proven successful, with a widening retention gap and a ~15% increase in relative retention after Month 5. Hardware revenues witnessed a 33% YoY increase, with a raised CY23 guidance anticipating a 10% to 15% YoY growth in hardware revenue.

Financial Resilience and Ongoing Investments:

Life360 emphasized its commitment to balancing expense management with investments in long-term growth opportunities. Positive Adjusted EBITDA of AU$5.5 million demonstrated a AU$14.9 million improvement YoY. The company's strong balance sheet, with $63.7 million in cash and equivalents, positions it well for future growth initiatives.

Allkem Receives FIRB Approval for Merger with Livent Corporation

Allkem Limited (ASX: AKE) announced that the new holding company, Arcadium Lithium plc ("NewCo"), resulting from the proposed merger of Allkem and Livent Corporation, has received approval from the Australian Foreign Investment Review Board (FIRB). This adds to the antitrust/competition approvals received in several countries, including Canada, China, Japan, South Korea, and the U.S.

Closing Target

Allkem and Livent target the closing of the Transaction on January 4, 2024. The FIRB Approval is a significant step towards completing the merger. The Transaction remains subject to shareholder and court approvals. These developments indicate a positive trajectory for Life360 and Allkem, reflecting strong financial performances, strategic expansions, and progress toward transformative mergers.

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