Life360, Inc. · NASDAQ:LIF
Life360 — H1 2022 Earnings Presentation
42 slides from Life360's earnings presentation, Aug 16, 2022
Slide 1: CY22 H1 Results Investor Presentation
Slide 2: Disclaimer
Disclaimer This document dated 16 August 2022 has been prepared by Life360, Inc. (ARBN 629 412 942) (Company) and is provided for information purposes only. it contains summary information obout the Company and its activities ond is current os at the dote of this document. It should be read in conju
Slide 3: Agenda
Agenda Business and Strategy Update Chris Hulls, Co-Founder and CEO Financial Overview Russell Burke, CFO Outlook Chris Hulls, Co-Founder and CEO Q&A Chris Hulls and Russell Burke Appendix 1. Operating metrics 2. Unit Economics - Marketing payback 3. Non-GAAP financial measures Note : All references
Slide 4: Business Update
Slide 5: CY22 H1 achievements
CY22 H1 achievements Creating a one-stop trusted family safety membership service Delivering strong core subscription momentum 42m Monthly Active Users +29% YoY 1.4m Paying Circles +41% YoY, second highest ever quarterly net subscriber additions YoY achieving nt revenue scale Unified platform in pla
Slide 6: Resilience in current challenging macro environment
Resilience in current challenging macro environment On track for seasonal Q3 uplift with higher overall volumes US trials US new subscriptions _p oe a CHVID-19 CH#VID-19 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ——2019 2020 2021 ——2022 2019 2020
Slide 7: CY22 H1 User Highlights
CY22 H1 User Highlights Connecting families and saving lives 1,138,353 Z\ Help alerts sent 105,731,475,183 Miles driven with Life360 Crash Detection 14,349 O-O: Ambulances dispatched i 12,092,565,856 Safe arrival notifications 373 billion By) Tile Bluetooth location updates 66 My boys were headed to
Slide 8: CYHI Results
CYHI Results Summary Continued strong subscription revenue momentum, up 90% including Tile and Jiobit subscriptions, and 60% for Life360 subscriptions on a like-for-like basis Hardware revenue constrained by strategic shift to prioritize higher margin sales channels, reduced paid acquisition spendin
Slide 9: Accelerating subscription revenue growth
Accelerating subscription revenue growth AMR has more than tripled since the IPO in May 2019 Note: Numbers may not *Annualised Monthly Rt @ ites6o 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 46 1019 Quarterly Annualised Monthly Revenue ($M)* 120 os Moe 90 fm mio ka ka ome 2ar9 garg 419 120
Slide 10: Global MAU reaching new heights with strong retention
Global MAU reaching new heights with strong retention Life360 Core Monthly Active Users (MAU)(M) Year-on-year growth of 29% Q1 Q2 @3 G4 GI G2 O3 O4 GI G2 G3 G4 GI G2 03 a4 GI G2 - 1 18 18 18 19 19 19 19 20 20 20 20 2 2 2 2 2 22 9) 102 (G3, 4 Gl Life360 Core Returning Monthly Active Users by cohort (
Slide 11: Subscription (Direct) Revenue
Subscription (Direct) Revenue YoY increase of 90%, +60% for Life360 subscription Subscription revenue’ ($M) 8.0 40 a 50.3 fw | ~ cY19 HI CY20 HI cy21HI CY22 HI mLife360 US _Life360 International Tile/Jiobit ¢ Strong rebound in developed international territories with Paying Circles in the UK and Aus
Slide 12: Accelerating Paying Circle growth
Accelerating Paying Circle growth Paying Circle acceleration combining with higher ARPPC to drive Subscription Revenue Paying Circles by product line (000s) 506 5 08 298 ‘aio 406 90° 512 464 420 395 361 537 324 5 a2 202 238 2 eueeeeeeeee oes soon mm Hn Hl Hl Ql G2 G3 24 QI G2 G3 a4 QI 2 G3 G4 QI Q2
Slide 13: Strong US Paying Circle conversion and net additions
Strong US Paying Circle conversion and net additions Record US registrations and increasing conversion driving strong subscriber growth Record US registrations + a 2.0% 15% 1.0% 0.5% 0.0% Qi @2 G3 G4 aI a2 a3 a4 aI a2 20 20 20 20 2 2 A A 22 22 Improving conversion Ql G2 G3 G4 aI Q2 G3 a4 aI a2 20 20
Slide 14: Tile and Jiobit
Tile and Jiobit Scaling Life360’s consolidated subscriptions Life360 Consolidated subscriptions (millions)* 39 ae ff 259 76 Ql19 G2 3 Q4 Ql Q2 Q3 a4 QI21 G2 G3 a4 al 19 19 19 20 20 20 20 a 2 2 22 mlife360 — wTile — Jiobit “Source: Jiobit is proforma to G3 21 ond Tile is proforma to QA 21 @itesoo Lif
Slide 15: Hardware revenue
• • • • • • • • Reflects significant returns in the period to clear channel inventory
Slide 16: Other (Indirect) Revenue
Other (Indirect) Revenue Year-on-year increase of 23% y Data * New partnership with Placer.ai in January 2022 to Other revenue ($M) transition Life360 solely to sales of aggregated insights * Minimum revenue guarantee based on the size of Life360's monthly active user base is expected to preserve re
Slide 17: Strategy Update
Slide 18: Life360, Tile and Jiobit integrated offering
Life360, Tile and Jiobit integrated offering Completing our ‘360’ vision of protecting people, pets and things Expanded addressable market and brand reach + Bundled offering will have broader applicability to additional demographics + Long-term this opens up additional markets such as elder care + E
Slide 19: Life360 and Tile integration
Life360 and Tile integration H1 integration efforts to be reflected in H2 Brand Expanded Tile Bundled campaign Finding Network subscriptions* Introduce and drive Tile’s Finding Tiles offered as ‘awareness of Tile as Network activated part of bundled part of Life360 brand subscription offer Educate u
Slide 20: Back to School brand campaign
Back to School brand campaign Introducing Life360+Tile + Creative approach to unite the two brands under a family safety umbrella * Streaming TV, audio and social focused on brand awareness and user acquisition for both brands + Already driving the lowest costs per install after only a few weeks on-
Slide 21: Bundled Membership
Bundled Membership Vision: keep everything that matters safe and sound * Raise awareness and introduce Tile in the Life360 app * Includes Tiles as part of bundled subscription offer * Bundling tests achieved a 35% uplift in subscriptions versus the control group * Bundle will be delivered initially
Slide 22: Tile Finding Network
Tile Finding Network Life360’s integration increases Tile’s reach by up to 10x Combining Life360's global network of more than 42 million smartphone users with Tile app and access point partnerships via Amazon and others Enables the only vertically integrated, cross-platform solution of scale in the
Slide 23: Holiday season retail Life360 offer
Holiday season retail Life360 offer Testing a new funnel for Life360 subscriber acquisition + Update signage with Life360 and Tile co-branding + Bundle offer including Life360 membership with select Tile purchase Tiles your Senthe mae + In-box documentation with Life360 activation codes
Slide 24: ESG: Progressing our Sustainability journey
ESG : Progressing our Sustainability journey Life360 Core Values are Family Safety and Security Employees + Employee Resource Group: Creating safe spaces for minority groups and women engineers to connect in the workplace + People and talent training: Budget allocation to support training programs,
Slide 25: Financial Overview
at \ Ae Finan@lar \ Overview
Slide 26: Market leading retention metrics
Market leading retention metrics US Organic User Retention Relative retention by cohort (% total) Month 1 user retention over time 100% 80% 80% Line chart indicates how long users \ 70% within a given cohort remain with 60% Life360 40% S&S _ 20% 50% con User retention rates benefit from on reactivat
Slide 27: Unit Economics
Unit Economics Significant uplift in cohort revenue in the first full month $M Quarter 1 82 3 1018 Quarter 3 82 s 3017 1019 3018 1020 3019 1021 3020 1022 3021 Quarter 2 82 $0 2018 Quarter 4 32 s » 2019 2020 2021 4018 aaie 4020 2022 4021 Significant uplift in conversion to paid, and larger user cohor
Slide 28: Unit Economics
Unit Economics User cohort cumulative revenue $M* Quarter 1 Quarter 2 $25 $25 $20 $20 315 315 3 $10 $10 $6 $8 COVID impacted revenue for $0 $0 CY20 Q2 to CY21Q1 SSSFRSS 2225833533852 5 Increased conversion to paid 1a18 ae 1020 1021 1022 earlier in a cohort’s lifecycle driving significant uplift in Q
Slide 29: Unit Economics
Unit Economics Significant US ARPPC uplift from the launch of membership with significant room for growth $190 $120 sno $100 $90 $80 $70 $60 $50 $40 om MM OM = 12M_=—sSM_—sBM_=— IM 28M 27M 30M 3M 36M 30M 42M SM 48M SIM. 84M 57M 60M. 4019 aig —1019 —2019 3019 1022 2022 @itesoo CY22 HI Results August
Slide 30: Unit Economics
Unit Economics Net subscription revenue retention at 100% even as absolute growth in subscribers accelerates Net Revenue Retention - Subscription (vs Previous Half)* 120% 100% 80% cavis9 60% 40% 2HI8 qHI9 2H19 1H20 2H20 1H21 2H21 1H22 Subscriber retention (%) —==Gross subscriber additions Net revenu
Slide 31: Income Statement
Income Statement $M c¥22H1 cyziHt ch YoY US. revenue Subscription (Direct) a0 324 88% Other (indirect) 134 105 28% International revenue Subscription (Direct) 80 40 100% Other (Indirect) 09 n (3y% Hardware 165 - 100% Total revenue 99.8 48.0 108% Cost of Revenue (24) (0) 260% Stock Based Compensation
Slide 32: Balance Sheet
Balance Sheet Commentary oh SEE allice: Ge Eecaneil ‘© Cash and cash equivalents decreased by $166.7 Cash and cash equivalents 64.3 231.0 : ESS 75 ie million largely due to cash payments made in Costs capitalised to obtain revenue contracts, net 16 13 relation to the Tile acquisition in January 2022
Slide 33: Cash Flow
Cash Flow Commentary SSSEUSEV EBITDA (REX Uae EROS rE eo} increased by $38.6m reflecting investment to grow er (ee) (ea) the business and the Jiobit and Tile acquisitions Statutory EBITDA (66.1) (10.4) Net cash outflows from investing activities are in Stock-based compensation 165 51 connection with
Slide 34: Outlook
Slide 35: Pathway to profitability
Pathway to profitability cY22 HI cy23 cyYy24 Investing in Tile and Full yer of bundled Scaling the Jiobit integration offering and cost integrated business efficiencies . ms Trajectory to profitability Profitability and Adlusted EBUIDA! ED and positive cash flow positive cash flow * Continued strong
Slide 36: Outlook
Outlook + As previously indicated, CY22 H1 was a period of significant investment. The investment and cash burn were as anticipated, and Life360 expects to start realizing the benefits of integration in H2, as we launch the bundled Membership offering and see an uplift in hardware in the seasonally
Slide 37: Q&A
Slide 38: Appendix
Slide 39: 1. Operating Metrics
1. Operating Metrics (in millions, except ARPPC,ARPS,ASP) Pe 212021] 22021] 32021] 42021] ai2022| 022022 | Life360 Core Monthly Active Users (MAU) - Total 28.1 32.4 33.8 35.5, 38.3 42.0 US 18.1 20.4 22.2 23.7 25.1 27.0 International 10.0 12.1 1.6 1.8 13.2 14.9 Australia 07 0.8 08 1.0 1.0 VW Paying C
Slide 40: 2. Unit Economics
2. Unit Economics Marketing payback $M Quarter 1 10 2 (2) OSB "EM 20M 24M 28M 32M 36M 40M 44M 48M a5 1018 ——1019 —1020 021 022 Quarter 3 10 6 “4 2 ) A 24M 28M 32M 36M 40M 44M 48M ® to sors 3019 3020 321 @itreseo 10 6 2 Q © (10) 2 @ Quarter 2 OMEN HgE_ioM“ToM 20M 24M 28M 32M 36M 40M 44M 4aM 2018 OM 4
Slide 41: Non-GAAP financial measures: EBITDA and Adjusted EBITDA
We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. EBITDA and Adjusted EBITDA In addition to total revenue, net loss and other results under GAAP, we utilize non-GAAP calculations of earnings before interest,
Slide 42: Adjusted loss from ordinary activities after tax
Adjusted loss from ordinary activities after tax Adjusted loss from ordinary activities after tax is defined as Net Loss, excluding (i) stock-based compensation, (ii) Form 10 transaction costs, (iii) acquisition and integration costs, (iv) gain on revaluation of contingent consideration, and (v) amo