Life360, Inc. · NASDAQ:LIF
Life360 — NWR's Virtual Small Cap Investor Conference (March 2020)
34 slides from Life360's conference presentation, Mar 27, 2020
Slide 1: ASX Announcement: Conference Presentation
ASX ANNOUNCEMENT 27 March 2020 For personal use only Conference Presentation Chris Hulls, Co-Founder and CEO of San Francisco-based Life360, Inc. (Life360 or the Company) (ASX:360) will today participate in NWR’s Virtual Small Cap Investor Conference. The conference presentation is attached. Ends Au
Slide 2: Investor Presentation
For personal use only Investor Presentation Chris Hulls, Co-Founder & CEO 27 March 2020
Slide 3: Disclaimer
Disclaimer For personal use only This document dated 27 March 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 sh
Slide 4: Agenda
Agenda Business Overview For personal use only Life360 Membership Model Financial Overview Outlook Q&A Note : All references in this presentation to $ are to US$ 3
Slide 5: Business Overview
For personal use only Business Overview
Slide 6: 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 7: Media coverage
Ehe New York Eimes ES UPDATE How to Assess Security Risks While Traveling While we cfs WSJ | VIDEO and taking steps. How to Track People With Find My Friends, Sri Lanka days Google Maps and Life360 Where Art Thou, Aldo? To By Patrick Scot
Slide 8: 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 9: Rapidly expanding revenue profile
QUARTERLY REVENUE ($M) For personal use only Rapidly expanding revenue profile Growth in Direct and Indirect revenue reflects monetisation of user base • Direct revenue comprises subscription fees paid by Paying Circles for premium products • Indirect revenue (excl. ADT) is revenue generated from th
Slide 10: Record annual growth in Monthly Active Users
For personal use only MONTHLY ACTIVE USERS (MAU) (M) Record annual growth in Monthly Active Users 9
Slide 11: Efficient deployment of capital to paid user acquisition
2019 QUARTERLY USER ACQUISITION SPEND ($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 12: Direct Revenue
DIRECT REVENUE ($M) For personal use only Direct Revenue +78% DIRECT REVENUE AS A % TOTAL LIFE360 REVENUE (CY19) CY19 YoY growth Indirect US Direct International Direct 11
Slide 13: Paying Circles and Average Revenue per Paying Circle
PAYING CIRCLES (000s) AVERAGE REVENUE PER PAYING CIRCLE (ARPPC) ($) 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 14: Retention per cohort
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 15: 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 14
Slide 16: 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 17: Life360 Membership Model
For personal use only Life360 Membership Model 16
Slide 18: Life360 Membership is the culmination of 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
Slide 19: Membership offers services for every life stage
Membership allows us to offer services that hit the Ss, emotional triggers of every life stage Location and communication Crash and roadside LAUNCHING 2020 LAUNCHING 2020 _ Screen monitoring Ongoing features (i.e. wearables, Life360 insurance offerings, etc) FUTURE
Slide 20: Silver, Gold and Platinum Membership tiers
Life360 Silver Life360 Gold ° Life360 PI Membership Membership Membership Basic Life360 * Bose OSs. OCs. Osa. ion service: 2days 7days 30 days 60 days 2olerts Salerts Unlimited alerts Unlimited alerts ty - 5 miles tow and gas 50 miles tow and gas - up to $100 up to $250 up to $500
Slide 21: Identity Protection
Identity Protection Convenient way to monitor and protect your family’s digital safety Monitor (all users) Dark web email monitoring and alerting available FREE for all users Restore (Gold and Platinum) Access to live agents to help restore credit breaches with financial institutions Reimburse (Gold
Slide 22: Premium SOS
Premium SOS Have peace of mind knowing that help will be sent to you in an emergency Help Alert (free & premium options) You hold down the button, we call for help if you let go 24/7 live agent support Similar to Crash Detection, a Life360 agent is ready to respond to any emergency Expanding our saf
Slide 23: Curated content and family deals & discounts
For personal use only Curated content and family deals & discounts Content personalized for families Rely on the experts at Life360 to bring you content that answers all your safety and family life needs Exclusive Membership deals & discounts Providing valuable deals for family centered services and
Slide 24: Membership will benefit Life360's most important financial drivers
For personal use only Membership will directly benefit Life360’s most important financial drivers Increase in total addressable market and brand reach New features go beyond location to relevance at all life stages Increase in Premium conversion Broader offering provides more opportunities to conver
Slide 25: Financial Overview
For personal use only Financial Overview 24
Slide 26: Strong CY19 financial performance
Strong CY19 financial performance STRONG REVENUE GROWTH SUPPORTED BY SCALABLE COST BASE WITH MONETISATION OF USER BASE ($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) 25
Slide 27: 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 28: Outlook
For personal use only Outlook 27
Slide 29: Outlook
Outlook For personal use only Life360 reported CY19 results on 27 February 2020 and provided guidance for CY20 business and financial performance. CY20 Q1 results are expected to be broadly in line with internal forecasts. However there are considerable uncertainties over the duration of the current
Slide 30: For personal use only
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Slide 31: Appendix
For personal use only Appendix 30
Slide 32: 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 33: 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) 32
Slide 34: 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
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