Life360, Inc. · NASDAQ:LIF
Life360 — Q3 2024 Earnings Presentation
51 slides from Life360's earnings presentation, Nov 13, 2024
Slide 1: Q3'24 Investor Presentation
For personal use only Q3’24 Investor Presentation 12 November 2024 US PT 13 November 2024 AEDT Investor Presentation | November 2024
Slide 2: Disclaimer
Disclaimer For personal use only These materials and the accompanying oral presentation have been prepared by including without limitation any liability from fault of negligence. events, conditions or circumstances on which any such statement is based. Life360, Inc. (ARBN 629 412 942) (“Company”) on
Slide 3: Contents
Contents For personal use only 01 Life360 Overview (4 – 31) 02 Financial Update Q3’24 (32 – 42) 03 2024 Outlook (43 – 44) 04 Appendix (45 – 51) 1. Operating metrics 2. Financials 3. GAAP to Non-GAAP reconciliations & Non-GAAP financial measures Investor Presentation | November 2024 3
Slide 4: Life360 Overview
01 For personal use only Life360 Overview Investor Presentation | November 2024
Slide 5: Life360's mission is to keep people close to the ones they love
Life360’s mission is to keep people close to the ones they love Offering a holistic solution to improve everyday family life For personal use only Location sharing for the whole family Private map for your inner circle ...supercharged with safety Devices for people, pets, and things Market Free to u
Slide 6: Life360 at a glance
Life360 at a glance Global scale, durable growth, expanding profitability For personal use only $92.9m ~76.9M 170+ 360 billion #4 +18% YoY Countries where Miles driven with Global Monthly Top Social available in Apple Life360 Crash Q3’24 Revenue Active Users Networking App4 App Store 1 Detection3 $9
Slide 7: Distinctive product offering
Distinctive product offering Serving families of all types For personal use only Family messaging Real-time Location Sharing and Item Tracking driving Item tracking Effortless daily coordination with advanced location sharing and item tracking Driving Safety 24/7 support with crash detection, emerge
Slide 8: Significant opportunity to continue to expand TAM
Significant opportunity to continue to expand TAM For personal use only Family Financial Services Opportunities Expansion Auto Insurance Elderly ~$83bn Monitoring ~$80bn $3.1bn Advertising4 Advertising $2.7bn Pet Tracking3 $2.7bn Pet Tracking Pet Tracking ~$75bn $2.1bn Item Tracking2 $2.1bn Item Tra
Slide 9: Monetizing our addressable markets
Monetizing our addressable markets Future Opportunity For personal use only Subscription Services Devices Indirect Advertising Adjacent Markets Platinum First Party Data Elderly Auto Ads for Free Members Monetization Monitoring Insurance ✓ Roadside Assistance ✓ ID Theft Protection ✓ Medical Assistan
Slide 10: The aspirational goals that drive our strategy
The aspirational goals that drive our strategy For personal use only #1 150M+ $1B+ 25%+ Brand for everyday Monthly Active Users Revenue EBITDA margins family life Note: Long-term targets are not projections; they are goals and are forward-looking, subject to significant business, economic, regulator
Slide 11: Life360 strategy
Life360 strategy Powerful network effects driving significant long-term growth opportunity For personal use only Grow our Scale paid Create new Expand audience offerings revenue streams profitability By building a leading By driving higher By meeting family needs By leveraging the expense position a
Slide 12: Consistent MAU growth
Consistent MAU growth Largely due to organic adoption For personal use only • Consistent growth (Q1 2018 – Q3 Life360 Core Monthly Active Users (MAU)(M) 2024 CAGR) across both US and International at 33% and 31%, respectively 32% • US MAU base has grown in parallel +51% Total 35 YoY with consistent
Slide 13: Long remaining runway in U.S. penetration
Long remaining runway in U.S. penetration For personal use only Penetration by State (2020) Penetration by State (2024) 10% 29% 2% 5% States with more than 6% penetration in 2020 experienced over 134% penetration growth on average from September 2020 to September 2024, underpinning the remaining mea
Slide 14: Large global opportunity
Large global opportunity International penetration, while expanding, trails the U.S., with large upside opportunity For personal use only Penetration by Region (2020–2024)1 $ United Kingdom 2% 9% Canada (2020) (2024) $ 1% 3% (2020) (2024) Europe 0.4% 1.3% (2020) (2024) Australia & $ New Zealand 3% 1
Slide 15: One of the highest DAUs across all apps in the U.S.
One of the highest DAUs across all apps in the U.S. For personal use only US iOS App Rankings by DAU 1 US iOS Social Networking App Rankings by DAU 2 Source: data.ai, a Sensor Tower company. Note: DAUs (Daily Active Users) defined as devices having 1 or more foreground sessions within an app in a da
Slide 16: Strong U.S. Engagement
Strong U.S. Engagement – rivals the biggest names in social and streaming media For personal use only US DAU/MAU Ratio (%) Social Media Streaming Media 67 % 61 % 61 % 58 % 46 % 45 % 38 % 30 % 27 % 26 % 24 % 21 % 17 % 16 % 14 % 13 % 11 % Hyper- With Push Engaged Notif. Social1 (Video) Source: Sensor
Slide 17: Our freemium flywheel drives our growth
Our freemium flywheel drives our growth Network effects enhance new member acquisition and fuel competitive advantages For personal use only More Users Better Engagement Investor Presentation | November 2024 17
Slide 18: Life360's digital based freemium business
Life360’s digital based freemium business Freemium model becomes powerful at scale For personal use only • Strong word of mouth drives Advertising + Premium Referral Fees organic growth, supporting Monetization: Data + Lead Gen Subscription Other Sales1 efficient customer acquisition spend New Membe
Slide 19: Loyal and engaged user base enables monetization through Triple Tier membership
Loyal and engaged user base enables monetization through Triple Tier membership For personal use only Current Triple Tier Membership Bundles (US, UK, Canada, ANZ) FREE MEMBERSHIP SILVER MEMBERSHIP GOLD MEMBERSHIP PLATINUM MEMBERSHIP $0.00/mo $7.99/mo $14.99/mo $24.99/mo ✓ SOS + Place Alert (5 places
Slide 20: Scaling the international opportunity
Scaling the international opportunity Top 10 International MAU countries1 (65% of total International) Growing usage and increasing monetization globally For personal use only 1. United Kingdom 2. Brazil $ $ 3. Mexico 4. Australia Triple Tier Dual Tier 5. Italy UK, ANZ & CA Rest of World: Non-Triple
Slide 21: Paying Circles growing while raising prices
Paying Circles growing while raising prices For personal use only • Consistent growth (Q1 2018 – Q3 Paying Circles by geography (000s) 2024 CAGR) across both US and International at 30% and 33%, respectively +37% • Focus on driving customer value 31% 562 610 YoY has allowed for continued growth Tota
Slide 22: Life360 is a one-stop holistic experience vs competitors
Life360 is a one-stop holistic experience vs competitors With the only combined feature set across all of these isolated point solutions For personal use only Mobile Devices Premium Services 45% 65% of surveyed U.S. of Total Paying pet owner member 4.8 Circles are cross- platform 10.2M+ base has int
Slide 23: Life360's family safety focus creates a competitive moat
Life360’s family safety focus creates a competitive moat Providing peace of mind and engagement for families versus generic solutions For personal use only 1 in 8 U.S. Smartphone Owners Use Life3601 5x App Opens per Day1 #1 Brand Attribute2 “Peace of mind” 50 NPS Score Considered “Excellent” by NPS
Slide 24: Tile's Q3 New Product Launch
Tile’s Q3 New Product Launch Strengthens competitive advantage through brand unification & feature integration For personal use only First product launch since acquisition “Life360 Announces New • The new Life360 Tiles reduce Range Of Tile Bluetooth stress for families by finding lost Tracking Devic
Slide 25: Life360's purpose-built technology platform
Life360’s purpose-built technology platform Proprietary technology set to operate at scale globally For personal use only Cross Platform Compatibility Flexibility Reliability Accuracy $375+ Services iOS and Android, with seamless servicing of With many handset models and operating systems To respond
Slide 26: New monetization opportunities from free user base
New monetization opportunities from free user base Our differentiated audience can deliver value to B2B data providers and advertisers For personal use only Our differentiated audience… … has the potential to deliver significant value while maintaining privacy at the forefront of our member experien
Slide 27: High value offsite and direct sales advertising are differentiators
High value offsite and direct sales advertising are differentiators for Life360’s advertising model For personal use only The Future New & Expanded Sales Channels Offsite + Explore offsite Improved Ad (retargeting) Relevance, Data opportunities and Delivery Direct Sales to help brands connect Averag
Slide 28: Life360's differentiated advertising platform reach and capabilities
Life360’s differentiated advertising platform reach and capabilities For personal use only Offsite Inventory Partners Onsite / In App Types Advertising Audience Engine Thousands of Unique Connected TV/OTT Banner Ads | Push Notifications Audiences and Targeting Capabilities Email | Interstitials | On
Slide 29: The advertising opportunity for Life360
The advertising opportunity for Life360 Data indicates long-term growth potential in advertising revenue For personal use only Ad Revenue ARPU by MAU (M)1,2 $7 $6 Advertising ARPU $5 $4 $3 $2 $1 $-- -- 100 200 300 400 500 600 700 800 900 MAU Ad Revenue ARPU from Launch1,3 Large Market Opportunity $4
Slide 30: What sets Life360 apart
What sets Life360 apart For personal use only Fully integrated cross- Recognized leader in family platform offering through safety and security leading mobile app & supporting devices Loyal and engaged user base Strong brand awareness and with multiple monetization freemium model driving vectors inc
Slide 31: Life360's highly attractive financial model
Life360’s highly attractive financial model For personal use only Growth at Highly Engaged Digital Strong Capital Strategic Scale Members Drive Economics and Efficiency Opportunities Acquisition Flywheel Profitability for Growth $336.2M AMR as of ~76.9M Global MAU and Globally scalable tech Capital
Slide 32: Financial Update Q3'24
02 For personal use only Financial 02 Update Q3’24 Investor Presentation | November 2024
Slide 33: Q3'24 Achievements
Q3’24 Achievements Cementing our position as the market-leading family safety membership service For personal use only Growing our Scaling paid Creating new Expanding audience offerings revenue streams profitability ~76.9m ~2.2m $92.9m Global Monthly Active Global Paying Circles Revenue Initial infr
Slide 34: Q3'24 Results Summary
Q3’24 Results Summary Delivering on growth Commentary For personal use only • Continued strong subscription revenue $M Q3’24 Q3’23 Change % ch YoY momentum, up 27% including hardware Revenue subscriptions, and 34% for Life360 Subscription 71.8 56.6 15.2 27% subscriptions Hardware 11.7 15.5 (3.8) (24
Slide 35: Continued strong revenue momentum
Continued strong revenue momentum For personal use only Quarterly Annualized Monthly Revenue ($M)* Quarterly Revenue ($M) $93 +30% $9 +43% YoY growth in $79 YoY September 2024 $6 $12 Annualized Monthly $16 revenue $57 -24% YoY $6 336 305 $12 274 285 239 249 259 $72 224 +27% 184 $57 YoY 166 174 140 1
Slide 36: Global MAU
Global MAU Q3’24 year over year growth of 32% For personal use only Life360 Core Monthly Active Users (MAU)(M) International Triple Tier launch countries MAU +51% YoY 35 30 28 25 +47% 23 20 YoY 18 19 18 15 13 12 12 12 +39% 11 12 9 10 10 YoY 11 9 39 40 42 +19% 11 35 37 YoY 9 10 29 31 32 34 8 25 27 7
Slide 37: Subscription Revenue
Subscription Revenue Year over year growth of 27% For personal use only Consolidated Subscription revenue ($M) Subscription revenue as a % of total consolidated revenue (Q3’24) Hardware Other 71.8 Hardware 65.7 61.6 59.8 Subscription 56.6 Life360 US 51.7 52.7 45.4 Subscription 36.0 39.0 33.1 Life360
Slide 38: Paying Circles
Paying Circles Record global net additions in Q3’24 For personal use only $139 $138 $38 +42% YoY Paying Circles by geography (000s) International Triple Tier launch +42% YoY countries Paying Circles +37% 610 YoY UK & ANZ 562 508 Legacy price 446 474 increases +52% 396 YoY 364 310 332 275 243 227 204
Slide 39: Average Revenue Per Paying Circle (ARPPC)
Average Revenue Per Paying Circle (ARPPC) Triple Tier launches and price increases for legacy subscribers driving international ARPPC For personal use only Average Revenue Per Paying Circle (ARPPC) ($) 1 International Triple Tier launch countries revenue $153 +4% YoY +6% +65% YoY Global YoY ARPPC 2
Slide 40: Hardware revenue
Hardware revenue Updated range of Tile devices launched in Q3’24 For personal use only Hardware revenue ($M)* Hardware revenue as % of total consolidated revenue (Q3’24) Hardware 13% Other 21.1 10% 19.6 Hardware 15.5 Subscription 6% Life360 US 11.6 11.9 11.7 11.7 Subscription 10.5 10.0 10.2 61% 6.8
Slide 41: Other revenue
Other revenue Q3’24 revenue growth of 43% YoY For personal use only Other revenue ($M) Other Revenue as % of total consolidated revenue (Q3’24) Hardware 13% Other 10% 9.3 8.3 Hardware 7.3 Subscription 6.5 6.5 6.0 6.5 6.5 6.5 6.3 6.1 6% Life360 US Subscription 61% Life360 10% International Subscripti
Slide 42: Expanding profitability
Expanding profitability Adjusted EBITDA ($M) Leveraging the cost base as we scale For personal use only 11.0 9.0 8.9 5.7 5.5 0.5 4.3 Costs are declining as a % of revenue1 1.6 -9.4 2022 -13.7 2023 -18.7 2024 88% 25% 69% 68% Other costs Q1 Q2 Q3 Q4 19% 14% 20% Commissions TBU – AJEs in process User A
Slide 43: 2024 Outlook
03 For personal use only 2024 Outlook Investor Presentation | November 2024 43
Slide 44: Outlook
Outlook For personal use only Life360 has updated its 2024 earnings guidance and expects to deliver the following metrics: • Consolidated revenue of $368 and restricted cash of $150 million million - $374 million revised from - $160 million. The forecast $370 million to $378 million to includes expe
Slide 45: Appendix
04 For personal use only Appendix Investor Presentation | November 2024 45
Slide 46: Operating Metrics
APPENDIX 1 Operating Metrics For personal use only (in millions , except AR PPC , AR PPS, ASP) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 1 C ore Monthly Active Us ers (MAU) - Global 76.9 70.6 66.4 61 .4 58.4 54.0 U.S . 42.2 40.5 38.8 36.8 35.4 33.6 International 34.7 30.1 27.5 24.6 23.0 20.4 A
Slide 47: Income Statement
APPENDIX 2 Income Statement For personal use only $ in millions, except share and per share data Q3 2024 Q3 2023 Revenue Subscription revenue $ 71.8 $ 56.6 Hardware revenue 11.7 15.5 Other revenue 9.3 6.5 Total revenue 92.9 78.6 Cost of Revenue Cost of subscription revenue 10.7 8.3 Cost of hardware
Slide 48: Balance Sheet and Cash Flow
APPENDIX 2 Balance Sheet Cash Flow For personal use only $M September 30, December 31, Nine Months Ended September 30, 2024 2023 2024 2023 Current Assets: Cash Flows from Operating Activities: Net loss $ (13.1) $ (25.0) Cash and cash equivalents $ 159.0 $ 69.0 Adjustments to reconcile net loss to ne
Slide 49: GAAP to Non-GAAP reconciliation
APPENDIX 3 GAAP to Non-GAAP reconciliation For personal use only Operating expenses $M Q3 2024 Q3 2023 Research and development expense, GAAP 29.0 24.6 Less: Stock-based compensation (6.6) (5.5) Total Research and development, Non-GAAP 22.4 19.1 Sales and marketing expense, GAAP 30.7 25.7 Less: Depr
Slide 50: Non-GAAP Financial Measures
We collect and analyze operating and financial data to evaluate the health of our APPENDIX 3 business, allocate our resources and assess our performance. Non-GAAP Financial Measures EBITDA and Adjusted EBITDA For personal use only In addition to total revenue, net income (loss) and other results und
Slide 51: Thank You
For personal use only Thank You Investor Presentation | November 2024