Life360, Inc. · NASDAQ:LIF

Life360 — Q2 2024 Earnings Presentation

49 slides from Life360's earnings presentation, Aug 9, 2024

  1. Slide 1: Q2'24 Investor Presentation

    For personal use only Q2’24 Investor Presentation 8 August 2024 US PT 9 August 2024 AEST Investor Presentation | August 2024

  2. 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

  3. Slide 3: Contents

    01 For personal use only Life360 Overview (4 – 28) 02 Financial Update Q2’24 (29 – 39) Contents 03 2024 Outlook (40 – 41) 04 Appendix (42 – 48) 1. Operating metrics 2. Financials 3. GAAP to Non-GAAP reconciliations & Non-GAAP financial measures Investor Presentation | August 2024 3

  4. Slide 4: Life360 Overview

    01 For personal use only Life360 Overview Investor Presentation | August 2024 4

  5. 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

  6. Slide 6: Life360 at a glance

    Life360 at a glance Global scale, durable growth, expanding profitability For personal use only $84.9m ~70.6M 170+ 339 billion #4 +20% YoY Countries where Miles driven with Global Monthly Top Social available in Apple Life360 Crash Q2’24 Revenue Active Users Networking App4 App Store 1 Detection3 $1

  7. Slide 7: Distinctive product offering

    Distinctive product offering Serving families of all types For personal use only Family messaging Real-time driving Location Sharing Effortless daily coordination with advanced location sharing Driving Safety 24/7 support with crash detection, emergency dispatch, roadside assistance and more One-tap

  8. 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 Elderly Monitoring Auto ~$83bn Insurance ~$80bn $3.1bn Advertising4 Advertising $2.7bn Pet Tracking3 $2.7bn Pet Tracking Pet Tracking ~$75bn $2.1bn Item Tracking2 $2.1bn Item Tra

  9. 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 Ads for Free Members Elderly Auto ✓ Roadside Assistance ✓ ID Theft Protection Monetization Monitoring Insurance ✓ Medical Assistan

  10. 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

  11. 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

  12. Slide 12: Consistent MAU growth

    Consistent MAU growth Largely due to organic adoption For personal use only • Consistent growth (Q1 2018 – Q2 Life360 Core Monthly Active Users (MAU)(M) 2024 CAGR) across both US and International at 34% and 29%, respectively +48% 32% 28 30 YoY • US MAU base has grown in parallel Total 25 with consi

  13. 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% 25% 2% 5% States with more than 6% penetration in 2020 experienced over 115% penetration growth on average from March 2020 to March 2024, underpinning the remaining meaningful

  14. Slide 14: 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

  15. Slide 15: 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 64 % 62 % 60 % 58 % 45 % 44 % 38 % 30 % 27 % 26 % 24 % 21 % 19 % 18 % 14 % 13 % 12 % Hyper- With Push Engaged Notif. Social1 (Video) Source: Sensor

  16. Slide 16: 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% 8% (2020) (2024) Canada Europe 1% 3% 0.4% 1.2% (2020) (2024) (2020) (2024) Australia & New Zealand United Sta

  17. Slide 17: Our freemium flywheel drives our growth

    Our freemium flywheel drives our growth For personal use only More Users Better Engagement Investor Presentation | August 2024 17

  18. 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

  19. Slide 19: Loyal and engaged user base enables monetization through membership

    Loyal and engaged user base enables monetization through membership For personal use only Current U.S. Membership Bundles Long tailed conversion FREE MEMBERSHIP SILVER MEMBERSHIP GOLD MEMBERSHIP PLATINUM MEMBERSHIP pattern with oldest free $0.00/mo $7.99/mo $14.99/mo $24.99/mo user cohorts still con

  20. Slide 20: Paying Circles growing while raising prices

    Paying Circles growing while raising prices For personal use only • Consistent growth (Q1 2018 – Q2 Paying Circles by geography (000s) 2024 CAGR) across both US and International at 30% and 33%, respectively +42% 562 YoY • Focus on driving customer value has 31% 508 474 446 allowed for continued gro

  21. Slide 21: 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 4.7 Circles are cross- platform 10.1M+ member base have in

  22. Slide 22: Life360's family safety focus creates a competitive moat

    Life360’s family safety focus creates a competitive moat Providing peace of mind and engaging 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 Attribute1,2 “Peace of mind” 50 NPS Score Considered “Excellent” by NPS

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: The Life360 advertising opportunity

    The Life360 CASE STUDY: advertising opportunity For personal use only 2 $900 Advertising launch success story $6.41 Large Market Opportunity $500 Create new revenue streams: advertising fuels revenue growth $4.07 Global Mobile Advertising Spend1 $141 $402bn $0.13 $11 $1.32 2020 2021 2022 2023 (2024

  27. Slide 27: 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

  28. Slide 28: 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 $304.8M AMR as of ~70.6M Global MAU and Globally scalable tech Capital

  29. Slide 29: Financial Update Q2'24

    02 For personal use only Financial Update Q2’24 Investor Presentation | August 2024 29

  30. Slide 30: Q2'24 Achievements

    Q2’24 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 ~71m ~2m $84.9m Global Monthly Active Global Paying Circles Revenue Initial infrastr

  31. Slide 31: Q2'24 Results Summary

    Q2’24 Results Summary Delivering on growth Commentary For personal use only • Continued strong subscription $M Q2’24 Q2’23 Change % ch YoY revenue momentum, up 25% Revenue including hardware Subscription 65.7 52.7 13.0 25% subscriptions, and 25% for Life360 subscriptions Hardware 11.9 11.6 0.3 3% Ot

  32. Slide 32: Continued strong revenue momentum

    Continued strong revenue momentum For personal use only Quarterly Annualized Monthly Revenue ($M)* Quarterly Revenue ($M) $85 +23% +12% YoY growth in $7 YoY June 2024 $71 $12 Annualized $6 Monthly revenue +3% $12 YoY $49 305 285 274 $6 259 239 249 $7 224 184 $66 +25% 166 174 YoY $53 140 124 90 96 10

  33. Slide 33: Global MAU

    Global MAU Q2’24 year-on-year growth of 31% For personal use only Life360 Core Monthly Active Users (MAU)(M) International Triple Tier launch countries MAU +48% 30 YoY 28 25 23 20 +40% 19 18 YoY 18 15 13 12 12 12 11 12 10 10 +38% 9 9 40 YoY 11 39 11 34 35 37 +20% 10 31 32 YoY 9 27 29 8 24 25 7 20 22

  34. Slide 34: Subscription Revenue

    Subscription Revenue Year-on-year growth of 25% For personal use only Consolidated Subscription revenue ($M)* Subscription revenue as a % of total consolidated revenue (Q2’24) Hardware Other Life360 US 65.7 61.6 59.8 Subscription 56.6 51.7 52.7 45.4 36.0 39.0 33.1 Hardware Subscription Life360 Inter

  35. Slide 35: Paying Circles

    Paying Circles Record global net additions in Q2’24 For personal use only $139 $138 $38 +42% YoY Paying Circles by geography (000s) International Triple Tier launch +42% YoY countries Paying Circles +42% 562 YoY 508 UK & ANZ 474 Legacy price 446 increases 396 364 310 332 275 +43% 243 YoY 227 204 186

  36. Slide 36: 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 $152 launch countries revenue +8% YoY +6% +58% YoY Global YoY ARPPC 2

  37. Slide 37: Hardware revenue

    Hardware revenue Q2’24 revenue growth of 3% YoY For personal use only Hardware revenue ($M)* Hardware revenue as % of total consolidated revenue (Q2’24) Hardware 14% Other 21.1 9% 19.6 Life360 US 15.5 6% Subscription 11.6 11.9 11.7 10.5 10.0 10.2 Hardware 6.8 Subscription 62% 9% Life360 Internationa

  38. Slide 38: Other revenue

    Other revenue Q2’24 revenue growth of 12% YoY For personal use only Other revenue ($M) Other Revenue as % of total consolidated revenue (Q2’24) Hardware 14% Other 9% 8.3 7.3 Life360 US 6.5 6.5 6.5 6.5 6.5 6.3 6.1 Subscription 6.0 6% Hardware Subscription 62% 9% Life360 International Q1 Q2 Q3 Q4 Subs

  39. Slide 39: Expanding profitability

    Expanding profitability Adjusted EBITDA ($M) Leveraging the cost base as we scale For personal use only 11.0 Costs are declining as a % of revenue1 5.7 5.5 8.9 0.5 4.3 1.6 102% -9.4 2022 -13.7 2023 -18.7 2024 29% 69% 64% 13% Other costs 16% Q1 Q2 Q3 Q4 17% Commissions 14% User Acquisition & TV 15% E

  40. Slide 40: 2024 Outlook

    03 For personal use only 2024 Outlook Investor Presentation | August 2024 40

  41. Slide 41: Outlook

    Outlook For personal use only Life360 has updated its 2024 earnings guidance and expects to deliver the following metrics which include both the early revenue and set-up costs for the new advertising business, as well as an intentional reallocation of paid acquisition and other marketing costs from

  42. Slide 42: Appendix

    04 For personal use only Appendix Investor Presentation | August 2024 42

  43. Slide 43: Operating Metrics

    APPENDIX 1 Operating Metrics For personal use only (in millions, except ARPPC, ARPPS, ASP) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Core1 Monthly Active Users (MAU) - Global 70.6 66.4 61.4 58.4 54.0 50.8 U.S. 40.5 38.8 36.8 35.4 33.6 31.7 International 30.1 27.5 24.6 23.0 20.4 19.1 ANZ 2.4 2.

  44. Slide 44: Income Statement

    APPENDIX 2 Income Statement For personal use only $ in millions, except share and per share data Q2 2024 Q2 2023 Revenue Subscription $ 65.7 $ 52.7 Hardware 11.9 11.6 Other 7.3 6.5 Total revenue 84.9 70.8 Cost of Revenue Cost of subscription revenue 10.4 6.4 Cost of hardware revenue 9.9 8.7 Cost of

  45. Slide 45: Balance Sheet and Cash Flow

    APPENDIX 2 Balance Sheet Cash Flow For personal use only $M June 30, December 31, Six Months Ended June 30, 2024 2023 2024 2023 Current Assets: Cash Flows from Operating Activities: Cash and cash equivalents $ 160.8 $ 69.0 Net loss $ (20.7) $ (18.5) Adjustments to reconcile net loss to net cash prov

  46. Slide 46: GAAP to Non-GAAP reconciliation

    APPENDIX 3 GAAP to Non-GAAP reconciliation For personal use only Operating expenses $M Q2 2024 Q2 2023 Research and development expense, GAAP 27.0 23.2 Less: Stock-based compensation (6.5) (5.3) Total Research and development, Non-GAAP 20.5 17.9 Sales and marketing expense, GAAP 24.4 23.3 Less: Depr

  47. Slide 47: Non-GAAP Financial Measures

    APPENDIX 3 We collect and analyze operating and financial data to evaluate the health of our 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 loss and other results under GAAP,

  48. Slide 48: Non-GAAP Financial Measures cont'd

    APPENDIX 3 Non-GAAP Financial Measures cont’d For personal use only The following table presents a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted profit from ordinary activities after tax. Adjusted profit from ordinary activities after tax $M Three Months Ended Ju

  49. Slide 49: Thank you

    For personal use only Thank you Investor Presentation | August 2024

Life360 — Q2 2024 Earnings Presentation on 6ix