Life360, Inc. · NASDAQ:LIF
Life360 — FY2020 Earnings Presentation
48 slides from Life360's earnings presentation, Feb 25, 2021
Slide 1: For personal use only
For personal use only
Slide 2: Disclaimer
Disclaimer This document dated 25 February 2021 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 should be read in con
Slide 3: Appendix
Appendix “ ) 1. Operating metrics - 2. Reconciliation to COGS expense presentation 2 ; ———” 3. Life360 Membership offering jote » this _—_ FeSene US$ £ _ f ~ itso —— |, - | | = I , CY20 Results | February 2021 3
Slide 4: For personal use only
For personal use only
Slide 5: For personal use only
For personal use only ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 6: CY20 User Highlights
CY20 User Highlights 7 Connecting families and saving lives a 7. ay \ 2,038,768 See sf Help alerts sent 52,957,392,571 < Back Ratings & Reviews Miles driven with Life360 Crash Detection 14,209 Ambulances dispatched My family is grateful this app Life360 is an absolute lifesaver! It i detected that m
Slide 7: For personal use only
Direct Indirect 22.2 148 7.3 59.4 44) 24.8 cys cyg cy20 -7.0 18.1 22.9 cys cyg cy20 Underlying EBITDA*** wy 34,1 67 Wa 19.4 151 2) 96 z 408 19.9 205 cy 8 cyi9 cY20 Other costs “Commissions User Acquisition mR&D ness 1.49x 1.20x cy 8 cy19 cy 20
Slide 8: Growing revenue in midst of COVID-19
Growing revenue in midst of COVID-19 QUARTERLY REVENUE* ($M) © Indirect . Year-on-year revenue growth achieved in every quarter of CY20 despite COVID-19 impacts * December 2020 Annualised Monthly Revenue (AMR) of $89.7 million, up 19% YoY 1Q16 216 3QI6 4Q16 1QI7 2QI7 3QI7 4QI7 1018 2018 3QI8 4Q18 11
Slide 9: International MAU
109 9 95 10.4 85 5.4 163 163 17.0 47 12.7 36 «38 10.0 1.7 27 3.2 43 e THI6 2HI6 1HI7 2HI7 2H18 1HI9 2H1I9 =-1H20.—-2H20 International * US CY20 MAU grew 4% YoY to 17.0m despite COVID impacts (10%) (20%) (30%) June vs March 2020 Total International MAU December vs June 2020 Top 20 Covid countries* *
Slide 10: MAU and Paying Circles growth
700 25 20 600 15 500 10 4aio 1Q20 2Q20 3Q20 4Q20 4aio 1Q20 2Q20 3Q20 4Q20 * CY20 Q4 MAU was 658k, up 14% QoQ and 15% YoY * CY20 Q4 Paying Circles increased 7% QoQ and 28% YoY
Slide 11: User cohort activity
Covid impact leading to “deactivations”* in March and April Recovery in pre-2020 cohorts from “reactivations”** Before 2015 m2016 m2017 2018 m2019 m2020 Dec-19 Covid impact leading to “deactivations” Jan-20 Feo-20 Mar-20 Apr-20 Before 2015 2016 May-20 2017 Jun-20 Recovery in pre-2020 cohorts from “r
Slide 12: Life360 and Google Collaboration
Life360 and Google Collaboration Br inging family co-ordination features to Google Assistant-enabled devices * New feature rolled out in Australia, the U.S. and the U.K. allowing families to get an easy update on their family’s whereabouts by creating a free Life360 account Brings Life360's leading
Slide 13: Media coverage
TH WALLSTREET JOURNAL USA TODAY. KIM KOMANDO protocol @ TODAY WEIR AD) Fatherly Better Homes &Gardens oo
Slide 14: Delivering strong +35% growth in Direct Revenue
Delivering strong +35% growth in Direct Revenue CY20 YoY growth DIRECT REVENUE AS A % REVENUE (CY20) DIRECT REVENUE ($M)* m=US © International International Direct US Direct “Includes non-recurring adjustment of approximately $0.9 million in relation to deferral of subscription revenue @titesso Cv20
Slide 15: Paying Circles and US ARPPC
US International 1000 Legacy Driver Protect» Legacy 360 Plus 900 Legacy Other Membership $77.86 800 $70.27 700 $62.04 600 $58.90 500 400 $48.74 $48.44 300 $2929 aa 200 , 100 O+ cylé cy cig cris cy20 oHI6 oHI7 oHI8 ono 2H20 * 8% YoY growth in Paying Circles to 889K * ~11% YoY increase in CY20 H2 US A
Slide 16: Membership offering: Competitive landscape
Membership offering Competitive landscape For personal use only Total Cost* $256.34/month “Assuming family household of four people. Prices may vary. Y Roadside Assistance ID Theft Protection \ Nurse Helpline Crash Detection Travel Assistance v v \ SOS Alert \ Disaster Assistance \ Driver Reports v
Slide 17: Membership results versus expectations
Expectations $110-$115 New 5 subscribers +-30% vs 1H 20 $76-$78 Total subscriber +-7% base vs 1H 20 Results $116 +34% vs 1H 20 $78 +9% vs 1H 20 Expectations 65-70% 25% Silver + Platinum membership performed at the upper Gold end of expected range + Gold outperformed expectations with -75% of new mem
Slide 18: Revenue mix US and International
cy 18 cy19 @US = mlnternational CcY20 Indirect International Direct n% 62% US Direct
Slide 19: Indirect revenue: Data and lead generation
Data * Data revenue continued to deliver strong YoY growth despite COVID-19 impacts, reflecting Life360’s expanded reach * Some impact on the data business is expected from the implementation of Identifier for Advertisers (IDFA) Lead generation * Auto insurance lead generation with Allstate formally
Slide 20: Randi Zuckerberg, Independent Non-Executive Director
Randi Zuckerberg Independent Non-Executive Director * Randi is passionate about helping families navigate our digital world. Through her company, Zuckerberg Media, she has created award-winning content and experiences around digital literacy and safety + Randi is the best selling author of four book
Slide 21: Strategy Overview and Update
Strategy Overview and Update @ lifes6o — Sf G 2) c S A . eZ C om 4 { : <4 a W 4 ye f
Slide 22: The ultimate opportunity
The ultimate opportunity Disrupt the multi-billion dollar industries protecting what you care about most Mobile-first approach to industries Incumbents do not meet the needs Our engaged digital User base built on 90s technology of digitally native fam is a Trojan Horse for these categories AUTO @tit
Slide 23: For personal use only
For personal use only • • • • • • •
Slide 24: Build User Base: Investing in the free user experience
Build User Base Investing in the free user experience * Investing heavily in the free user experience to stay ahead of the competition * Leveraging momentum with teens by offering features more specifically catered to their needs * Evolving from “where are you” to “how are you” to allow for more emo
Slide 25: Build User Base: Expanding marketing beyond performance channels
Build User Base Expanding marketing beyond pure performance channels * Launching brand refresh centred around the concept of ‘independence’ rather than tracking * Incorporating new Membership offering into campaigns to help build awareness of new broader suite of services For personal use only Doubl
Slide 26: Grow Membership: Bringing features into core experience
A Identity Theft Protection al Upsell example - Q2 launch G r OW Show ID breaches for free Provide ID breach solutions through premium upsell e Membership oe Bringing Membership features into the core user experience * Current Membership offering is still in its early days * Core focus of 2021 is to
Slide 27: Grow Membership: From app only to full e-commerce
Grow = Membership = From app only to full e-commerce * New feature allowing for direct paid Membership sign-up via the web * Currently in beta, with plans to ramp up acquisition in the channel over the coming year * Developing a web dashboard that will open up Life360 to members who may not use all
Slide 28: Grow Membership: International expansion
Grow Membership International expansion * Launching full Membership experience in Canada in H2 * These results will serve as a playbook for further expansion into other regions in 2022 and beyond ¢ Primary focus is on Anglosphere and EU with strong cultural overlap * Additional ongoing parallel inve
Slide 29: Auto Insurance Marketplace
wate ©). Johnson Family 6 Li _rsneman wie a Sarah 18200 Sutter St ax You can save up to $500 a year on your car insurance. eo X Auto Insurance Marketplace We're here to help you save on your car insurance = Insurance from brands you trust We partner with leading insurance companies to match you with
Slide 30: Expand Reach and Revenue: Testing new verticals
r Expand Reach and Revenue Testing new verticals * Launch of early testing to explore new verticals to enter in 2022 and beyond * Options include hardware devices for kids and pets, elder care, and family financial services For personal use only @uitesco ‘CY20 Results | February 2021 30
Slide 31: Financial Overview
Financial Overview $ For personal use only @itesco C¥20 Results | February 2021 31
Slide 32: Resilient retention despite COVID-19 impact
Resilient retention despite COVID-19 impact * Charts indicate how long users within a given cohort remain with Life360 * COVID-19 had aninitial negative impact on organic users followed by a “bump” of reactivations + User retention rates benefit from reactivation of previous users * Minimal impact t
Slide 33: Unit Economics: Net subscription revenue retention
Unit Economics Net subscription revenue retention exceeds 100% NET REVENUE RETENTION - SUBSCRIPTION (VS PREVIOUS HALF)* “Revenue retention is measured based on the revenue in the final month of the previous period compared to the revenue from the same set of users earned over the next six months e.g
Slide 34: Unit Economics: Cohort cumulative revenue
Unit Economics SS COVID impacted CY20 Q2 and Q3 2020 cohorts, revenue retention robust for older cohorts For personal use onl Q1USER COHORT CUMULATIVE REVENUE* ($M) 10188 ——1019 1020 OM 3M 6M 9M 12M 15M 18M 2IM 24M 27M 30M 33M 36M 39M 42M Q3 USER COHORT CUMULATIVE REVENUE ($M) 3Q17 sas 3Q19 3020 OM
Slide 35: For personal use only
For personal use only $130 $120 $110 $100 $90 $80 $70 $60 $50 $40 0M 3M 6M 9M 12M 15M 18M 21M 24M 27M 30M 33M 36M 39M 42M 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
Slide 36: For personal use only
© @ LZ 1018 2018 sa 0 ae —1019 2019 3019 4019 0 1020 2020 me 3Q20 © 4020
Slide 37: Income Statement
Income Statement $M U.S. revenue Direct Indirect International revenue Direct Indirect Total revenue Cost of Revenue Stock Based Compensation Total cost of revenue Gross Profit Gross Margin % Underlying Gross Margin (%) Research and Development User acquisition Sales and marketing General and admini
Slide 38: Balance Sheet
Balance Sheet $M Cash and cash equivalents Accounts receivable Costs capitalised to obtain revenue contracts, net Prepaid expenses and other current assets Total current assets Property and equipment, net Costs capitalised to obtain revenue contracts, net of current portion Intangible assets, net Ri
Slide 39: Commentary
Commentary Net cash outflows from operating activities reduced by in user acquisition spend undertaken in response to the Statutory EBITDA (pre user acquisition) (9.3) (9.3) COVID-19 environment User acquisition costs (19.4) (627) 5 ‘# Net cash outflows from investing activities reflects minor tatut
Slide 40: Outlook
Outlook Ajuo asn peuosied 104 ey
Slide 41: Outlook
Outlook @ tifes6o We are very encouraged that Life360 ended the year with strong annual growth in spite of the COVID-19 headwinds. Early signs of recovery in the top-of-funnel were evident in January 2021, with YoY subscription revenue growth of 20%. Having delivered two consecutive quarters of cash
Slide 42: Strategic Review
Strategic Review * Given current valuations in the US for high growth technology companies, Life360 has received inbound interest that could result in an accelerated listing/dual listing on a US exchange, the acquisition of a strategically important business, and/or merger with a larger entity. * As
Slide 43: For personal use only
CY20 Results | February 2021 43
Slide 44: For personal use only
CY20 Results | February 2021 44
Slide 45: 1. Operating Metrics
1. Operating Metrics Monthly Active Users (millions) U.S. International Total Paying Circles (millions) US. International Total Direct ARPPC (USS annualised) US. International Total ARPU (US$ annualised) US. International 77 71 14.8 0.33 0.10 0.43 59.83 42.31 2.76 0.64 Note : ARPU calculation exclud
Slide 46: 2. Reconciliation to COGS expense presentation
2. Reconciliation to COGS expense presentation cocs New COGS Former cost presentation reclassification Cost presentation i cyi9cy20.—sc20 cyig = cY20.—s C20 cyi9cy20.— C20 FY HI FY FY HI FY FY HI FY Cost of revenue 0.0 0.0 0.0 (1.7) (6.9) (18.0) (1.7) (6.9) (15.0) Stock based compensation 0.0 0.0 0.
Slide 47: 3. Life360 Membership offering
3. Life360 Membership offering aS Membership allows us to offer services that hit the emotional triggers of every life stage < Location and Communication Crash and Roadside Assistance Identity Protection sos fe) 2 © a = ) LL Ongoing Features & Services (i.e. wearables, Life360 insurance offerings, e
Slide 48: Membership tiers: Basic, Silver, Gold, Platinum
Basic Life360 Account Real-time Location Sharing 2 Place Alerts 2 days of Location History Unlimited Check-Ins Crash Detection Family Driving Summary SOS Alert Silver Make daily coordination a breeze 5 Place Alerts 7 days of Location History Crime Reports $100 Stolen Phone Coverage 8 Gold Protect yo