Slide 1: CY23 H1 Results Investor Presentation
CY23 H1 Results Investor Presentation 15 August 2023 { ©) Lifes60 ¢ ; rk
Slide 2: Disclaimer
Disclaimer This document dated 15 August 2023 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 ond is current as at the date of this document. It should be read in conj
Slide 3: Agenda
Business Update Chris Hulls, Co-Founder and CEO Strategy Update Lauren Antonoff, COO Financial Overview Russell Burke Outlook Chris Hulls Q&A Chris Hulls, Russell Burke Appendix iting metrics financial measures » ’ Note : All references inthi ;ntation to $ are on
Slide 4: Business Update
Update Chris Hulls, Co-Founder and CE Russell Burke, CFO
Slide 5: Why we exist
WHY WE EXIST. The Life360 mission is to keep people close to the ones they love Life360 aims to build on our foundation of location and family safety to disrupt billion dollar categories by creating mobile experiences that make life safer, easier and more satisfying with Families with ili jith ng ki
Slide 6: Management Presentation | August 2023
6Management Presentation | August 2023 6 billion
Slide 7: One of the Highest DAUs Across All Apps
One of the Highest DAUs Across All Apps US App Rankings by DAU! Hin June 2028: data ai @itreseo Whats App Messenger Amazon Life360 Family Locator v @ one we @ Beterest = (2) RoBLOK The Weather Channel 20 , a 2 23 4 25 26 © a 2 BE lin} nw ©] (=) Discord Microsoft Outlook Google Photos Pandora Music N
Slide 8: Best in Class Engagement
BEST IN CLASS ENGAGEMENT Rivals the biggest names in social and streaming media Global Daily Active Users (DAU)/Monthly Active Users (MAU) Ratio (%) 64% Social Media Streaming Media Source: dota.ai 1. Hyper-Engaged Social represents the average DAU/MAU of Facebook, Instagram, Snapchat, TikTok, and T
Slide 9: CY23 H1 Achievements
CY23 H] ACHIEVEMENTS Cementing our position as the market-leading family safety membership service Lom eae Growing our audience ~54m Global Monthly Active Users + 29% YoY 41% Daily Active Users as % Monthly Active Users* *For month of June 2028, **June 2023 Annualized Monthly Revenue (AMR) @tesoo Ex
Slide 10: CY23 H1 Results Summary
CY23 H] RESULTS SUMMARY Delivering on growth $M Y22H1 CY23 HI ch YoY Re evenue Commentary Subscription 69.1 104.4 +51% Hardware 16.5 21.6 +31% + Strong subscription revenue momentum, up Other 14.3 13.0 (9)% 51% including hardware subscriptions, and Total revenue 99.8 138.9 +39% 300-310 ksi Miche cui
Slide 11: Accelerating Subscription Revenue Growth
ACCELERATING SUBSCRIPTION REVENUE GROWTH Quarterly AMR has more than tripled since our IPO in May 2019 Quarterly Annualized Monthly Revenue ($M)* 250 200 YoY growth in June 2023 Annualiz Month revenue 150 100 ° ] 1019-2019 3QI9 4019 1420 220 3020 4020 1021 2021 3021 4021 1022 2022 3022 4022 1023 202
Slide 12: Global MAU Reaching New Heights with Strong Retention
GLOBAL MAU REACHING NEW HEIGHTS WITH STRONG RETENTION MAU year-on-year growth of 29% Life360 Core Monthly Active Users (MAU)(M) Life360 Core Returning Monthly Active Users by cohort (RMAU)*(M) cavin19 has QI G2 G3 G4 GI G2 G3 G4 QI G2 G3 G4 GI G2 G3 G4 GI G2 G3 G4 GI G2 1B 18 18 18 19 19 19 19 20 20
Slide 13: Subscription revenue by segment
161 cy HI 24.4 cyY20 HI US. 61.0 32.4 cy2iHi Cy22HI International 927 cy23 Hi Hordwore Other Hardware Subscription ufes6o International Subscri Life360 US Subscription CY23 HI Results August 2023 8
Slide 14: Paying Circle Growth and Accelerating ARPPC Growth
PAYING CIRCLE GROWTH AND ACCELERATING ARPPC GROWTH Price increase accelerating ARPPC uplift Paying Circles by product line (000s) Average Revenue Per Paying Circle (ARPPC) ($)* $141 Q Ce —Us —international i Q2'23 ARPPC os ee increased 42% YoY 10% YoY while for US subscribers increasing prices refle
Slide 15: Cohort Monetization Trends
COHORT MONETIZATION TRENDS Rapidly growing U.S. and accelerating International monetization U.S. Paying Circle Monthly Revenue by Registration International Paying Circle Monthly Revenue by Cohort ($M) Registration Cohort ($M) ©egesgghui ti F HANKANAB =eegeesesh F FF FRNQSS Bees 6 6 & 5 8 § &§ SBE E
Slide 16: Hardware Revenue
HARDWARE REVENUE Valuable component of Life360’s location ecosystem + CY23 HI revenue growth of 31% supported by 7% uplift in hardware units sold, and 11% increase in average sales price (ASP). Hardware + Unit growth reflected reduced returns in Q2'23, 2022 2023 16% and backdrop of weaker consumer e
Slide 17: Other Revenue
OTHER REVENUE Revenue stabilization reflects de-risking of Data business eianavenia Other Revenue as % of ($m)* total consolidated revenue (CY23 H1) Data Hordwore + Hl revenue decline of 9% year-on-year reflects new partnership with Placer.ai in January 2022, and transition to solely sales of aggreg
Slide 18: Strategy Update
Update Chief Operating Officer
Slide 19: Strategy Update: 2023 Key Initiatives
STRATEGY UPDATE 2023 Key Initiatives @ttesoo Grow our Audience Drive Membership TS Join Gold, get a free Tile Mate! Expand Internationally Maintain financial discipline Cv23 HI Results August 2023 9
Slide 20: Strategy Update: Grow our Audience
STRATEGY UPDATE Grow our Audience Continuing to improve the core experience and building user engagement for long-term growth GH wore rcceteretion Qcongrts + van + Bring the map to life Amplify member communications Feedback to encourage to drive engagement safer driving @tesoo C23 HI Results August
Slide 21: Strategy Update: Drive Membership
STRATEGY UPDATE Drive Membership Leverage hardware bundling and feature-focused promotions to drive continued subscription revenue growth In-app member experience Enhanced in-app features to drive awareness of key value propositions, improving monetization Roadside assistance Pin freshness Promo pin
Slide 22: Strategy Update: Expand Internationally
STRATEGY UPDATE Expand Internationally Creating free international user experience parity to drive growth International Free User Retention (Month 1) Significantly improving international retention in line with investment with feature parity 60% sox 40% 20% 20% C#VID-19 10% es via Panel) es 255528 2
Slide 23: Expand Internationally: Monetizing Free User Base
STRATEGY UPDATE Expand Internationally Monetizing free user base through Membership in key regions MAU (M) —, CY22H1 CY22H2 CY23 HI User retention is approaching U.S. levels, supporting top of funnel growth @itesoo Canada, UK, Australia Performance Paying Circles (000s) Cy22H1 CY22H2 CY23HI Signific
Slide 24: Strategy Update: Maintain Financial Discipline
STRATEGY UPDATE Maintain financial discipline Expense drivers for CY23 At pivot point to leverage scale in the cost base while still and beyond investing for growth * Cost base at scale providing profitability leverage Operating Costs by category declining as % total revenue* + More than $15 million
Slide 25: Financial Overview
Financial S o > hn 7G oO : >: 0:
Slide 26: Financial Overview: Market Leading Retention Metrics
FINANCIAL OVERVIEW, Market leading retention metrics US Organic User Retention Relative retention by cohort (% total) 100% ra ae ox SS 1 5 9 13-17 21 26 29 33 37 A) 45 49 53 57 61 65 69 73 ——War-17 Mar-i8 Mar9 Mar-20 Mar 21 ee Mr-22 Mar 23 US Average Churn Rate over Time (% total monthly subscribers
Slide 27: Financial Overview: User Cohort Cumulative Revenue
FINANCIAL OVERVIEW. User cohort cumulative revenue $M* Quarter 1 $30 om BSE 3018 12M 15M 18M 21M 24M 3019 2M 30M 2 33M 26M 3020 42M 45M 5IM 64M 3 3021 57M 6oM 63M 66M 3022 Quarter 2** $30 $20 $10 $0 5 22222222222222222222222 SOSFRSSSARSSSES SSS RE SES 2018 ——2019 2020 202) 2022 Quarter 4 ui $30 $20
Slide 28: Financial Overview: Marketing Payback
FINANCIAL OVERVIEW. Marketing Payback $M Quarter 1 $20 1018 1019 1020 1021 =m t022 1028 s10 $0 0 7 ZS3FR332228 3332853258 Quarter 3 20 3018 ——sare 020 502] ——=3022 $10 = ‘insufficient dato for 2023, @tesso Quarter 2* $20 2018 2019 2020 2021 7022 $10 —— $0 $10 SSSERESZRRSRSESESERE Quarter 4 $20 4018
Slide 29: Significant U.S. ARPPC Uplift from Price Increases
FINANCIAL OVERVIEW. Significant U.S. ARPPC uplift from progressive price increases in CY22 H2 $200 $180 $160 $60 $40 OM 3M 6M 2017 1019 4020 ——3022 @itreseo OM 12M 15M 18M 3017 —209 1021 4022 2M a J $120 Z 24M 27M 30M 38M 36M 39M 42M 45M 48M SIM 54M 57M 60M 63M 66M 1018 2018 ———= 3018 ans 4019 = 102
Slide 30: Net Subscription Revenue Retention at or Above 100%
FINANCIAL OVERVIEW. Net subscription revenue retention at or above 100% even as absolute growth in subscribers accelerates Net Revenue Retention - Subscription (vs Previous Half)* 120% 100% — 80% = 60% 40% 1H21 2H21 1H22 2H22 1H23. mmm Net revenue retention (%) Gross subscriber adds (000s) Commentar
Slide 31: Key Financial Metrics (Non-GAAP)
FINANCIAL OVERVIEW. Key Financial Metrics (Non-GAAP) SM cv23 HI cy22 1 ch YoY INCOME STATEMENT US. subscription revenue 92.7 610 52% International subscription revenue 17 81 45% Subscription revenue 104.4 691 51% Hardware revenue 21.6 165 31% ‘Other revenue 13.0 143 (9% Total revenue 138.9 99.8 39%
Slide 32: Income Statement (GAAP)
FINANCIAL OVERVIEW. Income Statement (GAAP) in millions, except share and per share data CY23 HI cy22 HI Revenue Subscription 104.4 oo Hardware 216 165 Other 13.0 143 Total revenue 138.9 99.8 __ Cost of subse enu 144 15.0 Cost of hardware revenue 18.2 186 Cost of other revenue W 19 Total cost of rev
Slide 33: Outlook
Slide 34: Outlook
Outlook For CY23 Life360 expects to deliver: * Core Life360 subscription revenue growth in excess of 50% YoY; + Hardware revenue growth of 0% to 5%; * Other revenue of approximately $26 million; * Consolidated revenue of $300 million - $310 million; * Positive Adjusted EBITDA* of $9 million - $14 mi
Slide 35: Q&A
Slide 36: Appendix
06 Appendix
Slide 37: Operating Metrics
APPENDIX 1 Operating Metrics (in millions, except ARPPC,ARPPS,ASP) Life360 Core* Monthly Active Users (MAU) - Total 42.0 47.0 48.6 50.8 54.0 US 27.0 29.3 30.9 317 33.6 International 49 77 7.6 19.1 20.4 Australia ul 12 La us 16 Paying Circles - Total** 1.39 1.49 1.49 1.67 1.63 US - Total** 1.12 1.18
Slide 38: Cost of Revenue and Operating Expenses GAAP to Non-GAAP
APPENDIX 2 Cost of Revenue and Operating expenses GAAP to Non-GAAP reconciliation Cost of revenue Operating expenses SM cY23 HI CY22 HI $M CY23 HT CY22 HT Cost of subscription revenue, GAAP 144 75.0 Research and development expense, GAAP 50.4 528 Less: Depreciation and amortization (0.6) (0.5) “Less
Slide 39: Balance Sheet (GAAP)
aprenDx2 Balance Sheet (GAAP) SM. June 30, 2023 December 31, 2022 ‘Assets ‘unaudited _ Current Assets Cash and cash equivalents 28 75.4 Restricted cash, current z 733 ‘Accounts receivable, net 335 331 —toventor — 10.4 108 Costs capitalised to obtain revenue contracts, net 13 14 Prepaid expen: i 39 a
Slide 40: Cash Flow (GAAP)
apPeNDIx2 Cash Flow (GAAP) M June 30, Cash Flows from Operating Activities Net oss 82) ‘Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization a5 45 Amortization of costs capitalized to obtain contracts as 7 ~ Amortization of operating | os = Stoc 8
Slide 41: Non-GAAP Financial Measures
APPENDIX 3 Non-GAAP Financial Measures $M ‘Six Months Ended June 30, 2023 2022 Net loss (18.5) (68.2) Add (deduct): Convertible notes fair value adjustment 02 0 Derivative liability fair value adjustment! 02 0.3) Provision for (benefit from) income taxes 04 - Depreciation and amortization? 45 45 Oth
Slide 42: 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. SM Net loss Stock-based compensation 182 165 Form 10 transaction costs - 24 Acquisition an
Slide 43: Thank you