Life360, Inc. · NASDAQ:LIF
Life360 — FY2023 Earnings Presentation
54 slides from Life360's earnings presentation, Feb 29, 2024
Slide 1: CY23 Results
CY23 Results Investor Presentation 1 March 2024
Slide 2: Disclaimer
Disclaimer This document dated 1 March 2024 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 of the date of this document. It should be read in conjunc
Slide 3: K, new image and layout please
K, new image and layout please
Slide 4: Business
o1 Business
Slide 5: CY23 User Metrics: Connecting families and saving lives
BUSINESS UPDATE _ CY23 User Metrics Connecting families and saving lives x your family on life360 premium, let me put this out there. No authorities or medical personnel had the time or ity to contact us the day of Lynley's accident. Life360 did right away and sent help. Go ahead and spend the extra
Slide 6: Business
BUSINESS ~61.4m Global Monthly Active Users (MAU) + 26% YoY 40% YoY growth in International MAU, with record MAU additions @itreseo ~1.8m Global Paying Circles + 21% YoY 25% YoY lift in Global ARPPC reflecting U.S. price increase ~470k International Paying Circles + 43% YoY UK Triple Tier Membership
Slide 7: CY23 Results Summary
BUSINESS UPDATE CY23 Results Summary Commentary Delivering on growth Continued strong subscription revenue momentum, up 44% $M CY22__CY23 Change _%ch YoY CY23 Guidance including hardware Revenue (GAAP) subscriptions, and 52% for Subscription 153.3 220.8 675 +44% life360 subscriptions Hardware 479 58
Slide 8: AMR has more than quadrupled since our IPO
BUSINESS UPDATE AMR has more than quadrupled since our IPO in May 2019 “Annualized Monthly Revenue (AMR) is financial measure used by the Company to identify the annualized monthly value of active customer agreements ot monthly value of subscription, data ond partnership agreements. All components o
Slide 9: Global MAU year-on-year growth of 26%
BUSINESS UPDATE Global MAU year-on-year growth of 26% Life360 Core Monthly Active Users (MAU)(M) International Triple Tier launch countries MAU 19% U growth = Canada mUK m Australia Ql G2 G3 Q4 GI G2 G3 G4 GI G2 G3 24 QI G2 G3 _Q4 QI G2 G3 G4 QI Q2 Q3 a4 1% 18 18 18 19 19 19 19 20 20 20 20 2 2 2 2 2
Slide 10: Subscription Revenue
BUSINESS UPDATE Subscription Revenue YoY increase of 52% for Life360 core subscription US mInternational 196.3 1361 72 37.4 520 cyig9 = CY20.— C2 cy22 -Cy23 C20 revenue is normalised revenue excluding o non-recurring adjustment. been reclassified to conform with new methodology @itreseo Hardware 19%
Slide 11: Paying Circle growth momentum despite price increase
BUSINESS UPDATE Paying Circle growth momentum despite price increase Paying Circles by geography (000s) International Triple Tier launch countries Paying Circles U.S. Paying Circles increased 14% YoY while increasing prices significantly = Canada mUK m Australia al 1 G2 G3 G4 GI G2 G3 G4 GI G2 G3 G4
Slide 12: Price increase driving U.S. ARPPC uplift
BUSINESS UPDATE Price increase driving U.S. ARPPC uplift UK Subscriber Pricing (iOS + android) Average Revenue Per Paying Circle (ARPPC) ($)* Triple Tier (from October 2023) Monthly Annual ' New subscribers eee US === international Silver £649 £64.90 $150 Gold £999 £11990 Platinum £1999 £199.90 Lega
Slide 13: Hardware revenue
BUSINESS UPDATE Hardware revenue Key component of Life360’s location ecosystem 2022 m2023 Hordware 19% Other 19.6 am Hordwore 15.5 Subscription 105 ey 17 y 68 Life360 a a2 a3 4 Internationel a Subscription +0722 revenue is adjusted and includes Tile revenue pre-aequistion ** Refer to the non-GAAP re
Slide 14: • • • *Includes non-recurring adjustment of approximately $0.9 million in relation
• • • *Includes non-recurring adjustment of approximately $0.9 million in relation
Slide 15: Strategy Overview
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Slide 16: Life360's mission is to keep people close to the ones they love
STRATEGY OVERVIEW Life360’s mission is to keep people close to the ones they love Life360’s category leading mobile app and Tile tracking devices are continuing to forge an entirely new market, connecting millions of people throughout the world to the people, pets and things they care about most. Ou
Slide 17: Entrusted to protect loved ones
STRATEGY OVERVIEW Entrusted to protect loved ones / It's been such a relief to my stress when my older son first started driving, and even now when he works late at night. For my younger son, it helped me locate him to pick him up from a park when he wasn't answering my calls and texts. My brother i
Slide 18: Deep engagement
% wef ~ ws . ° 4 Yr ~a Ui N ip deepengageme we NY iE \ The moment your oldest kiddo heads back to col- lege and you know you'll spend the next 8 hours glued to @Life360 like a good movie... Our U.S. members open Life360 an average of 5 times per day & a Cv2gietlts Pesan iN 18 a
Slide 19: Essential to daily life
bi " STRATEGY OVERMIEW Essential to } My brother's girlfriend is officially in the family } Life360. If that ain't modern romance i don’t know what is. Os 31% YoY growth in global Daily \ Active Users. > C23 Results Presentation 19
Slide 20: Proven product-market fit with significant growth upside
STRATEGY OVERVIEW Proven product-market fit with significant growth upside Significant untapped potential for growth within our member base Global Monthly Active Users* * As at December 31, 2023 @titesoo (CY23 Results Presentation 20
Slide 21: Making life better for our members
STRATEGY OVERVIEW 8.02am Making life better for our members “Did Michelle make it to school?” 5.15pm “Should | start making dinner yet?” ; 9.41pm é a “Where did Spot go?” Life360 has quickly become my favorite/most used app. Why is my Mom driving 80mph? My brother needs to charge his phone! Why is m
Slide 22: The Brand for everyday family life
ee a The i a= Brand for everyday 25%+ EBITDA margins family life resentation 22
Slide 23: 2024 Key Initiatives
STRATEGY OVERVIEW 2024 Key Initiatives Create new Expand revenue streams profitability Grow our audience Scale paid offerings
Slide 24: Grow our audience: path to 150M+ members
STRATEGY OVERVIEW Grow our audience: path to 150M+ members Viral experiences bolster New free product experiences Launching a new Tailoring marketing and organic user growth drive engagement marketing strategy to experience to win build a global brand international markets Meet at Zuni Cafe 123 Mare
Slide 25: Scale paid offerings: for all life stages
STRATEGY OVERVIEW Scale paid offerings: for all life stages New value propositions New international New Tile product Optimizing growth funnels for membership membership offers launched introductions designed to through continuous in UK and coming to Australia leverage Life360 value improvement Sara
Slide 26: Create new revenue streams: new advertising model
STRATEGY OVERVIEW Create new revenue streams: powered by 6IM+ MAU New advertising model Advertising allows us to monetize the exceptional value of Life360's free product + Unique opportunity to engage families + Powered by unparalleled first-party data + Continued commitment to safeguard the user ex
Slide 27: Create new revenue streams: advertising fuels ARPU growth
STRATEGY OVERVIEW Create new revenue streams: advertising fuels ARPU growth Massive Market Comparative Stats - Adver' 1g (2) > = Global Mobile Advertising Spendo, 2023 Ad Revenue Average MAU $/ 3 $M (m) «5 MAU « 5 Duolingo 48 70 0.68 g $402b uol scord 7 & s s — Reddit $789 237 $3.32 2024 estimate Sp
Slide 28: Expand profitability: leverage expense base as we scale
STRATEGY OVERVIEW Expand profitability: leverage expense base as we scale all Revenue growth and cost discipline driving Non-GAAP Operating Costs by category declining as trajectory to EBITDA breakeven ($M)* % total revenue** ——= Revenue (RHS) === EBITDA (LHS) === Adjusted EBITDA (LHS) 2s 100 ag 400
Slide 29: Market Opportunity
Market Bes Opportunity \ Russell Burke =! Chief Financial Officer Cd
Slide 30: Market Opportunity
MARKET OPPORTUNITY Trusted leader in family location sharing and safety ee Strong subscription growth and demonstrated operating discipline Founder-led with Significant scale enables seasoned executive team multiple growth levers
Slide 31: Significant addressable market opportunity
MARKET OPPORTUNITY Significant addressable market opportunity a4 Cy ea Source: SAM: Technavio, Raymond James Research, Magna Intelligence, Global Market. TAM: ResearchAndMarkets, Allied Market Research, Square @utesso Adjacent Markets Potential long-term adjacent markets in which we can expand our a
Slide 32: Significant remaining runway in U.S. penetration
MARKET OPPORTUNITY Significant remaining runway in U.S. penetration Increase in penetration across all states* Penetration by State (2020) Penetration by State (2023) 24% 5% States with higher penetration in 2020 experienced larger increases in penetration over the last 3 years; the opposite of over
Slide 33: Financial
\ —_ S 7 Financial | J
Slide 34: Market leading retention metrics
FINANCIAL OVERVIEW Market leading retention metrics U.S. Organic User Retention by cohort (%) Net subscription revenue retention approx. 100% * The line chart indicates how 100% Mor a _— _ long users within a given cohort Mor-20 Mar-2 Mor-22 ° remain with Lifes60 20% Mar 23 sox 20% INS Subscription
Slide 35: User cohort cumulative revenue
FINANCIAL OVERVIEW. User cohort cumulative revenue $M* Quarter 1 Quarter 2 $40 $40 $20 $30 $20 $20 $10 s10 so $0 333223322233 35833238333% 3535583222353 38 83 are 1019 1020 2018 —aa19 1021 —02 102 2021 —202 Quarter 3 Quarter 4 $40 $40 $30 $20 $20 $20 $10 $10 30 $0 SS3sRSS 2225338855723 233F 23328852
Slide 36: Income Statement (GAAP)
FINANCIAL OVERVIEW. Income Statement (GAAP) ‘$in millions, except share and per share data cy22 C23 Revenue Subscription $ 1533 $ 2208 Hardware 479 58.2 Other 274 255 Total revenue 228.3 304.5 Cost of subscription revenue 30.7 31.0 Cost of hardware revenue 45.4 ara Cost of other revenue 36 35 Total
Slide 37: Key Financial Metrics
FINANCIAL OVERVIEW. Key Financial Metrics ‘SM cy22 CY23__% ch YoY Non-GAAP Revenue US. subscription revenue 196.1 199.4 47% International subscription revenue 72 248 42% Subscription revenue 1533 2239 46% Hardware revenue 478 845 4% Other revenue 272 255 (6)% Total Non-GAAP Revenue (1) 228.3 303.9 3
Slide 38: Chris Hulls, Co-Founder and CEO
Chris Hulls, Co-Founder and CEO
Slide 39: Outlook
Outlook For CY24 Life360 expects to deliver the following metrics which include both the early revenue, and set-up costs, for the new advertising business: * Consolidated revenue of $365 million - $375 million, with core Life360 subscription revenue growth of at least 20% YoY; + Positive Adjusted EB
Slide 40: Q&A
06 Q&A Chris Hulls, Co-Founder and CEO Russell Burke, CFO
Slide 41: Appendix
Slide 42: Operating Metrics
APPENDIX 1 Operating Metrics xcept ARPPC, ARPPS, ASP) Q4 2022 Q12023 Q2 2023 Q3 2023 Q4 2023 Life360 Core* Monthly Active Users (MAU) - Global 48.6 50.8 54.0 58.4 614 US. 30.9 317 33.6 35.4 36.8 International 7.6 91 20.4 23.0 24.6 Australia 14 15 16 WA 1. Paying Circles - Total** 16 16 16 es 18 US 1
Slide 43: Balance Sheet (GAAP)
APPENDIX 2 Balance Sheet (GAAP) December 31, December 31, 2022 2023 Cash and cash equivalents $ 754 $ 69.0 Restricted cash, current 133 7 ‘Accounts receivable, net 331 422 Inventory 08 al Costs capitalized to obtain contracts, net 4 10 Prepaid expenses and other current assets as 152 Total current a
Slide 44: GAAP to Non-GAAP reconciliation
APPENDIX 3 GAAP to Non-GAAP reconciliation Revenue SM. cy22 Subscription revenue, GAAP included in Adjusted EBITDA 163.3 Bundled offerings = Total Subs: n revenue, Non-GAAP Hardware revenue, GAAP included in Adjusted EBITDA 478 Bundled offerings Total Hardware revenus lon-GAAP Other revenue, GAAP in
Slide 45: GAAP to Non-GAAP reconciliation
APPENDIX 3 GAAP to Non-GAAP reconciliation Cost of revenue SM cv22 cY23 Cost of subscription revenue, GAAP 30.7 31.0 Less: Depreciation and amortization (09) (12) Less: Stock-based compensation (0.6) (07) Less: Severance and other - (on) Less: Adjustment in connection with membership benefit 18 ie H
Slide 46: Non-GAAP Financial Measures
APPENDIX 3 Non-GAAP Financial Measures SM ‘Year ended December 3 2022 2023 Net loss (916) (282) Add (deduct): Convertible notes fair value adjustment (8) 07 Derivative liability fair value adjustment (1) (3) 01 Provision for income taxes 03 06 Depreciation and amortization (2) 92 0 Other income, net
Slide 47: Non-GAAP Financial Measures cont'd
APPENDIX 3 Non-GAAP Financial Measures cont’d The following table presents a reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted (loss) profit from ordinary activities after tax. $M Year ended December 31, 2022 2023 Net loss (91.6) (28.2) Stock-based compensation 347 3
Slide 48: • • • • • ✓ ✓ ✓ ✓ ✓ + + + +
• • • • • ✓ ✓ ✓ ✓ ✓ + + + + + + + + + + + + + + + + + + + + +
Slide 49: Competitive landscape
APPENDIX 4 Competitive landscape Life360 Platinum Wf Roadside Assistance Vi ID Theft Protection of Nurse Helpline vo Crash Detection vA SOS Alert Vf Disaster Assistance fe Driver Reports va Travel Assistance vA Stolen Phone if Location Sharing Reimbursement And more... Life360 Cost $24.99/month (Ass
Slide 50: One of the Highest DAUs Across All Apps
APPENDIX 4 One of the Highest DAUs Across All Apps US iOS Social Networking App Rankings by DAU" US App Rankings by DAU! a (9) WhatsApe Messenger + meets an f ees : Py Oz 2 3 Uy e Amazon e BeReal Netti. 23 Instagram Life360 Family Locator Facebook Messenger Spotify im pst 3 Google Google Maps ~) 7 M
Slide 51: Best in class engagement
APPENDIX 4 Best in class engagement - rivals the biggest names in social and streaming media Global DAU/MAU Ratio (%) Il Social Media CY23 Results Presentation 51
Slide 52: We are highly differentiated
APPENDIX 4 We are highly differentiated Life360’s specialized platform focused on Major platforms offer generic location serving families Family focus: Built for families x of all types Differentiated features: Far beyond location, with features like driver reports and crash detection. All made for
Slide 53: Life360's flywheel is driving our accelerating growth
APPENDIX 4 Life360’s flywheel is driving our accelerating growth + in-8 U.S. families use Life360 + 61m+ MAUs* * High brand awareness + 1.8m Paying Circles* Market i + Top 5 U.S. social Position networking app** Entrenched + User acquisition ee + Membership + Brand campaigns Reinvestment Monetizatio
Slide 54: Thank You