Slide 1: CY19 Results Investor Presentation
For personal use only CY19 Results Investor Presentation 27 February 2020
Slide 2: Disclaimer
Disclaimer For personal use only This document dated 27 February 2020 has been prepared by Life360, Inc. (ARBN 629 412 942) (Company) and is provided for information purposes only. It contains summary information about the Company and its activities and is current as at the date of this document. It
Slide 3: Agenda
Agenda Business and Strategy Overview For personal use only Chris Hulls, Co-Founder and CEO Financial Overview David Wiadrowski, Non-Executive Director Outlook Chris Hulls, Co-Founder and CEO Q&A Appendix 1. Operating metrics Note : All references in this presentation to $ are to 2. Reconciliation o
Slide 4: Business and Strategy Overview
For personal use only Business and Strategy Overview
Slide 5: CY19 Highlights
For personal use only CY19 Highlights Delivering on our strategy to build and monetise our user base ec ec 27.2m @ Monthly Active Users (+47% YoY growth) Full Life360 app redesign §75.4m Annualised Monthly Revenue Introduction of in-app lead gen units, privacy center, and location features Platform
Slide 6: Press coverage
Ehe New York Eimes ES UPDATE How to Assess Security Risks While Traveling While we cfs WSJ | VIDEO How to Track People With Find My Friends, Sri Lanka days Google Maps and Life360 Where Art Thou, Aldo? To By Patrick Scot
Slide 7: Connecting families and saving lives
For personal use only Connecting families and saving lives Peace of mind in action 827,438 Help Alerts triggered 19,212,904,889 miles driven with Life360 Crash Detection 9,448 ambulances dispatched 8,904,425,236 safe arrival notifications sent ‘Note: Numbers are based on internal database sampling a
Slide 8: CY19 Key Operating and Financial Metrics
CY19 Key Operating and Financial Metrics Outperformance vs Prospectus expectations For personal use only MONTHLY ACTIVE USER BASE AVERAGE REVENUE PER REVENUE AND ANNUALISED EBITDA (MAU) PAYING CIRCLE (ARPPC) MONTHLY REVENUE $M $M +5% +13% (US) +0.5% (Revenue) +6% (Statutory) 59.0 * Underlying EBITDA
Slide 9: Strong CY19 financial performance
Strong CY19 financial performance STRONG REVENUE GROWTH SUPPORTED BY SCALABLE COST BASE WITH MONETISATION OF USER BASE ($M) DISCRETIONARY INVESTMENT** ($M) For personal use only EBITDA LOSSES REFLECT VARIABLE INVESTMENT IMPROVING RATIO OF EXPENSES TO REVENUE IN R&D AND USER ACQUISITION *($M) 9
Slide 10: Rapidly expanding revenue profile
QUARTERLY REVENUE ($M) For personal use only Rapidly expanding revenue profile Growth in Direct and Indirect revenue reflects monetisation of user base • Direct revenue comprises subscription fees paid by Paying Circles for premium products • Indirect revenue (excl. ADT) is revenue generated from th
Slide 11: Record annual growth in Monthly Active Users
For personal use only MONTHLY ACTIVE USERS (MAU) (M) Record annual growth in Monthly Active Users 11
Slide 12: Efficient deployment of capital to paid user acquisition
2019 QUARTERLY USER ACQUISITION SPEND ($M) Efficient deployment For personal use only VERSUS US MAU ADDITIONS (M) of capital to paid user acquisition Record quarterly US MAU additions while user acquisition spending declined Disciplined capital deployment to positive Return on Investment (ROI) c
Slide 13: Direct Revenue
DIRECT REVENUE ($M) For personal use only Direct Revenue +78% DIRECT REVENUE AS A % TOTAL LIFE360 REVENUE (CY19) CY19 YoY growth Indirect US Direct International Direct 13
Slide 14: Paying Circles and ARPPC
PAYING CIRCLES (000s) AVERAGE REVENUE PER PAYING CIRCLE (ARPPC) ($) For personal use only • 43% YoY growth in Paying Circles to 827K • ~10% YoY increase in CY19 ARPPC supported by • 90%+ of new subscriptions for Driver Protect accelerating growth in Driver Protect and higher in December 2019 proport
Slide 15: Best-in-class retention continues to improve
US ORGANIC USER MONTHLY RETENTION PER COHORT Our already Relative (% total) Absolute (000s) best-in-class For personal use only retention continues to improve • Charts indicate how long users within a given cohort remain with Life360 US DRIVER PROTECT SUBSCRIBERS MONTHLY RETENTION PER COHORT Relativ
Slide 16: Indirect Revenue
INDIRECT REVENUE ($M) For personal use only Indirect Revenue +105% INDIRECT REVENUE AS A % TOTAL LIFE360 REVENUE (CY19) CY19 YoY growth Indirect 25% US Direct International Direct 16
Slide 17: Indirect revenue: Data, Allstate, ADT
Data • Continuing to scale with growth in MAU CONTRIBUTION TO INDIRECT REVENUE (CY19) For personal use only • Customer recognition of the value of Life360’s expanded reach driving new partnerships • Growth momentum expected to slow in 2020 Allstate Lead generation • Auto insurance lead generation wi
Slide 18: Rapidly growing ARPU profile
ARPU ($) For personal use only Rapidly growing ARPU profile CY19 global ARPU increased 26% YoY reflecting strong Direct and Indirect revenue growth 18 Note : ARPU calculation excludes ADT revenue
Slide 19: The Strategy Roadmap
The Strategy Roadmap 2019 2020 2021 For personal use only Subscription & Brand rollout Launch Membership Platform Business Expansion Brand and Broadly defined audience Segment audiences Expand audience use cases user growth Test new marketing channels Integrate marketing channels Leverage mass media
Slide 20: Life360 Membership: a 10-year vision
For personal use only Life360 Membership is the culmination of a 10-year vision 10m MAU Life360 Plus Driver Protect Membership 20
Slide 21: Membership offers services for every life stage
Membership allows us to offer services that hit the s. emotional triggers of every life stage Location and communication Crash and roadside LAUNCHING 2020 LAUNCHING 2020 _ Screen monitoring FOr perso Ongoing features (i.e. wearables, Life360 insurance offerings, etc) FUTURE
Slide 22: 2020 Membership roadmap
For personal use only 2020 Membership roadmap Ql Q2 Q3 Q4 Core infrastructure First time user experience (FUE) Free crash detection (FCD) Privacy Lead Gen v1 (advertising format) Triple Tier Premium SOS Identity Protection Lead Gen v2 (native integration) Launch follow-up Product marketing Lead Gen
Slide 23: Membership tiers
Life360 Silver Life360 Gold ° Life360 PI Membership Membership Membership Basic Life360 * Bose OSs. OCs. Osa. 2days 7days 30 days 60 days 2olerts Salerts Unlimited alerts Unlimited alerts - 5 miles tow and gas 50 miles tow and gas - up to $100 up to $250 up to $500
Slide 24: Identity Protection
Identity Protection Convenient way to monitor and protect your family’s digital safety Monitor (all users) Dark web email monitoring and alerting available FREE for all users Restore (Gold and Platinum) Access to live agents to help restore credit breaches with financial institutions Reimburse (Gold
Slide 25: Premium SOS
Premium SOS Have peace of mind knowing that help will be sent to you in an emergency Help Alert (free & premium options) You hold down the button, we call for help if you let go 24/7 live agent support Similar to Crash Detection, a Life360 agent is ready to respond to any emergency Expanding our saf
Slide 26: Curated content and family deals & discounts
For personal use only Curated content and family deals & discounts Content personalized for families Rely on the experts at Life360 to bring you content that answers all your safety and family life needs Exclusive Membership deals & discounts Providing valuable deals for family centered services and
Slide 27: Membership will benefit Life360's financial drivers
For personal use only Membership will directly benefit Life360’s most important financial drivers Increase in total addressable market and brand reach New features go beyond location to relevance at all life stages Increase in Premium conversion Broader offering provides more opportunities to conver
Slide 28: Financial Overview
For personal use only Financial Overview 28
Slide 29: Income Statement Commentary
Income Statement Commentary ● Direct revenue growth of 78% supported by 43% YoY growth in Paying Circles to 827k. ~10% increase in ARPPC benefiting from transition to For personal use only higher-priced Driver Protect and from annual to monthly subscriptions ● Indirect revenue growth of 105% support
Slide 30: Balance Sheet Commentary
Balance Sheet Commentary ● Increase in cash and cash equivalents reflects IPO proceeds For personal use only ● No debt following debt repayment ● Net cash balance of $64.1m (including restricted cash) 30
Slide 31: Cash Flow Commentary
Cash Flow Commentary ● Net cash outflow from operating activities reflects investment in R&D and paid user For personal use only acquisition ● Cash used in operating activities of $(30.5) million exceeded prospectus forecasts of $(24.6) milllion reflecting year-end prepayments of $6 million not incl
Slide 32: Outlook
For personal use only Outlook 32
Slide 33: Outlook
Outlook For personal use only The 2020 calendar year is expected to be one of transition and transformation for Life360 with the launch of the new membership experience by the end of the first half. The benefits through increased Average Revenue per Paying Circle are expected to begin to contribute
Slide 34: For personal use only
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Slide 35: Appendix
For personal use only Appendix 35
Slide 36: 1. Operating Metrics
1. Operating Metrics For personal use only (1) The number of International Paying Circles in CY16 is not available from our internal reporting systems Note : ARPU calculation excludes ADT revenue 36
Slide 37: 2. Reconciliation of Original to Adjusted Prospectus forecasts
2. Reconciliation of Original to Adjusted Prospectus forecasts For personal use only Note: 1) Customer support costs reallocated from General & Administrative, Research & Development costs reallocated from Technology, Sales and Marketing costs reallocated from General & Administrative. Other items r
Slide 38: 3. Drivers of ARPPC outperformance versus prospectus
Subscription tiers % total 3. Drivers of ARPPC outperformance versus For personal use only prospectus ● Higher proportion of Driver Protect ● Higher proportion of monthly versus annual subscriptions Monthly subscribers % total 38