Life360, Inc. · NASDAQ:LIF
Life360 — H1 2019 Earnings Presentation
35 slides from Life360's earnings presentation, Aug 22, 2019
Slide 1: CY19 H1 Results Investor Presentation
For personal use only CY19 H1 Results Investor Presentation 22 August 2019
Slide 2: Disclaimer
Disclaimer For personal use only This document dated 22 August 2019 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 s
Slide 3: Agenda
Agenda Business and Strategy Overview For personal use only Chris Hulls, Co-Founder and CEO Financial Overview Wendell Laidley, CFO Outlook z Chris Hulls, Co-Founder and CEO Q&A Appendix Note: All references in this presentation to $ are to US$
Slide 4: Business and Strategy Overview
For personal use only Business and Strategy Overview
Slide 5: CY19 H1 performance: investing for growth
MONETISATION OF USER BASE DRIVING SCALABLE COST BASE WITH STRONG REVENUE GROWTH ($M) DISCRETIONARY INVESTMENT ($M) For personal use only CY19 H1 performance +112% +114% Investing for growth and future profitability EBITDA LOSSES REFLECT DISCRETIONARY RATIO OF OPERATING EXPENSES TO INVESTMENT IN R&D
Slide 6: CY19 H1 Highlights
CY19 H1 Highlights For personal use only Delivering on our strategy to build and monetise our user base Brand and Product Platform International user growth expansion innovation growth 12.7m $1.0m v2 >23m US Monthly Active Users (MAU) Revenue from launch of Allstate Major product upgrade supporting
Slide 7: Brand & User Growth
Brand & User Growth For personal use only Rebrand Rollout Completed rollout of new brand identity to update the brand “look and feel” to create a strong relationship with our users and establish Life360 as a modern solution for digitally native families through: ● Website z ● User communications ● A
Slide 8: Product Expansion
Product Expansion For personal use only Delivering auto insurance offers based on driving behaviour ● >$1M in revenue in Q2 from Phase 1 launch of Allstate partnership ● Full integration with discounts and telematics in development
Slide 9: Platform Innovation
Platform Innovation Global release of major product upgrade For personal use only ● Increased premium integration resulting in higher Average Revenue Per Paying Circle (ARPPC) and improved premium retention ● Increased feature usage and engagement leading to improved free user retention ● Foundation
Slide 10: International Growth
International Growth Tech investment is improving international product performance e.g. faster speeds through migration to AWS Cloudfront For personal use only
Slide 11: International Growth
International Growth For personal use only Localised full slate of user communications for all 12 languages we support
Slide 12: Rapidly expanding revenue profile
QUARTERLY REVENUE ($M) For personal use only Rapidly expanding revenue profile Reflects monetisation of user base through Direct and Indirect revenue • Direct revenue comprises subscription fees paid by Paying Circles for premium products • Indirect revenue (excl. ADT) is revenue generated from the
Slide 13: Exceptional media coverage supporting US MAU growth
Exceptional media coverage supporting US MAU growth For personal use only MONTHLY ACTIVE USERS (MAU) (M)
Slide 14: User acquisition spend supporting growth in new US paid registrations
USER ACQUISITION SPEND ($M) For personal use only User acquisition spend supporting growth in new US paid registrations NEW US PAID REGISTRATIONS (M) Higher spend per user reflects increased user quality and Lifetime Value (LTV)
Slide 15: Direct Revenue
DIRECT REVENUE ($M) For personal use only Direct Revenue +89% DIRECT REVENUE AS A % TOTAL LIFE360 REVENUE (CY19 H1) CY19 H1 YoY growth
Slide 16: Paying Circles and Average Revenue per Paying Circle
PAYING CIRCLES (000s) AVERAGE REVENUE PER PAYING CIRCLE (ARPPC)1 ($) For personal use only ● 60% YoY growth in Paying Circles to 696k ● 7%+ YoY increase in CY19 H1 US ARPPC supported by ● Accelerating growth in higher priced Driver Protect accelerating growth in Driver Protect ● 95% of new subscript
Slide 17: Engaged user base supporting improved retention rates
US ORGANIC USER MONTHLY RETENTION PER COHORT Relative (% total) Absolute (000s) Engaged user For personal use only base is supporting improved retention rates US DRIVER PROTECT SUBSCRIBERS MONTHLY RETENTION PER COHORT Relative (% total) Absolute (000s) • These charts indicate how long a given cohort
Slide 18: Indirect Revenue
INDIRECT REVENUE ($M) For personal use only Indirect Revenue +302% INDIRECT REVENUE AS % TOTAL LIFE360 REVENUE (CY19 H1) CY19 H1 YoY growth
Slide 19: Indirect revenue: Data, Lead Generation, ADT
Data ● Strong YoY growth in revenue CONTRIBUTION TO INDIRECT ● Higher customer numbers across multiple sectors For personal use only REVENUE (CY19 H1) ● Increased revenue per customer Lead Generation ● Auto insurance lead generation with Allstate formally launched in May ● Revenues in excess of $1.0
Slide 20: Rapidly expanding ARPU profile
For personal use only ARPU ($) Rapidly expanding ARPU profile CY19 H1 ARPU increased 33% YoY reflecting strong Direct and Indirect revenue growth Note : ARPU calculation excludes ADT revenue
Slide 21: CY19 H2 Roadmap
CY19 H2 Roadmap For personal use only Implementing our strategy to build and monetise our user base Brand and user Product Platform International growth expansion innovation growth Launch of “back to school” Develop a membership Invest in infrastructure to Enhance local language strategic partnershi
Slide 22: Brand and User Growth
Brand and User Growth For personal use only + Back to School Campaign • Integrated campaign will leverage the momentum of “Back to School” season to increase Driver Protect subscriptions . • Our partnership with the National Parent Teachers Association (PTA) will be a core component, targeting paren
Slide 23: Product Expansion: Membership v1
Product Expansion For personal use only Membership v1 Developing a membership experience that expands Life360 beyond location into higher value family services CY19 H2 development phase. Launch in CY20 H1 to include: ● New bundled subscription offering with 3-tiers of premium and higher price points
Slide 24: Platform Innovation
Platform Innovation For personal use only We will continue to invest to be best-in-class in location technology and core user experience: ● Location freshness ● Temporary location / places ● Comparison of speed to posted speed limit ● iOS & Android updates
Slide 25: Data & Privacy
Data & Privacy For personal use only We are proactively addressing this important issue through the following initiatives: ● Introduction of a new Privacy Centre to provide users control of how their data is used ● Dedicated team formed to support data and privacy compliance
Slide 26: International Growth
International Growth For personal use only International target markets H2 Priorities ● Customise local pricing and simplify packages ● Continue investment in technology ● Localise marketing ● Expand User Acquisition spend
Slide 27: Financial Overview
For personal use only Financial Overview
Slide 28: Income Statement Commentary
Income Statement Commentary ● Total revenue increased >110% in CY19 H1 ● Annualised Monthly Revenue (AMR) of $62M in For personal use only June 2019 increased 112% over prior year period ● Direct revenue subscription offerings (Driver Protect, Life360 Plus) represent 75% of total revenue and increas
Slide 29: Balance Sheet Commentary
Balance Sheet Commentary ● Cash and cash equivalents increased by >$52M during CY19 H1 as a result of IPO For personal use only proceeds in May ● Deferred revenue of $7.1M was roughly $2M lower than Prospectus model forecast due to slower shift of subscriptions from monthly to annual terms ● Term de
Slide 30: Cash Flow Commentary
Cash Flow Commentary ● Adjusting for discretionary spend (User Acquisition, R&D), EBITDA was $9.2M for For personal use only CY19 H1 ● EBITDA of $(16.5)M for CY19 H1 reflected an increase of $(9.1)M compared to CY18 H1 ● Net loss of $(17.1)M in CY19 H1 compared to $(7.5)M in CY18 H1 ● Operating cash
Slide 31: Outlook
For personal use only Outlook
Slide 32: Outlook
Outlook For personal use only Life360 expects to achieve prospectus revenue forecasts of US$58.6 million for CY19 underpinned by Monthly Average User and Average Revenue per Paying Circle performance ahead of prospectus forecasts, and a successful launch of the Allstate partnership. These factors ar
Slide 33: For personal use only
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Slide 34: Appendix
For personal use only Appendix
Slide 35: Operating Metrics
Operating Metrics For personal use only (1) The number of International Paying Circles in CY16 is not available from our internal reporting systems Note : ARPU calculation excludes ADT revenue