Core Insights - Life360 achieved record quarterly results in Monthly Active Users (MAUs), Paying Circles, Subscription Revenue, and Annualized Monthly Revenue for Q3 2024, with MAUs reaching approximately 76.9 million, a 32% year-over-year increase [1][3][11] - Total revenue for Q3 2024 grew 18% year-over-year to $92.9 million, with subscription revenue increasing 27% year-over-year to $71.8 million [10][25] - The company raised its outlook for 2024 Adjusted EBITDA, expecting positive Adjusted EBITDA of $39 million to $42 million [11][36] User Growth and Engagement - The member base grew by 32% year-over-year, adding 6.3 million new MAUs in Q3 2024 [3][23] - Paying Circles saw a record net increase of 159 thousand, a 35% year-over-year growth, bringing the total to nearly 2.2 million [11][23] - International MAUs increased by 51% year-over-year, contributing significantly to overall growth [3][23] Revenue Performance - Annualized Monthly Revenue (AMR) increased by 30% year-over-year to $336.2 million [10][11] - Average Revenue Per Paying Circle (ARPPC) grew by 6% year-over-year, driven by a shift towards higher-priced products in the U.S. market [11][23] - Core subscription revenue increased by 34% year-over-year, primarily due to a 25% increase in Paying Circles [26] Product and Market Strategy - Life360 launched a new lineup of Tile devices, which significantly differentiates the company from competitors with its SOS feature [4][5] - The advertising initiative, particularly the partnership with Uber, is showing significant potential for monetization [7][8] - The company is focusing on international expansion, which is critical for future growth, and has started to reach tipping points in multiple countries [2][3] Financial Highlights - Q3 2024 net income was $7.7 million, marking a significant improvement from a net loss in the prior year [10][33] - Operating cash flow for Q3 2024 was $6.3 million, reflecting a 55% year-over-year increase [10][30] - Total operating expenses increased by 10% year-over-year, demonstrating strong operating leverage despite revenue growth [29] Future Outlook - Life360 updated its 2024 guidance, expecting consolidated revenue of $368 million to $374 million and maintaining core subscription revenue growth of over 25% year-over-year [11][36] - The company anticipates achieving positive EBITDA in Q4 2024 and sustaining positive Adjusted EBITDA on a quarterly basis moving forward [37][36]

Financial Performance - Q3'24 revenue reached $92.36 million, representing an 18% year-over-year growth[5] - Q3'24 total revenue reached $92.9 million, an 18% increase year-over-year from $78.6 million in Q3'23[39] - Subscription revenue grew to $71.8 million, reflecting a 27% year-over-year increase from $56.6 million[39] - Annualized Monthly Revenue (AMR) increased to $336.2 million, a 30% growth compared to $259.1 million in the previous year[39] - Net income for Q3'24 was $7.7 million, a significant improvement from a net loss of $6.5 million in Q3'23[39] - Other revenue surged by 43% year-over-year to $9.3 million, driven by increases in data and partnership revenue[50] - The company expects consolidated revenue for 2024 to be between $368 million and $374 million, with core subscription revenue growth projected at over 25% year-over-year[53] - Positive Adjusted EBITDA is anticipated to be between $39 million and $42 million for 2024, upgraded from previous estimates[53] - Adjusted EBITDA increased to $9.0 million in Q3 2024, up from $5.5 million in Q3 2023, reflecting a significant improvement in operational efficiency[63] - EBITDA for Q3 2024 was $(2.6) million, an improvement from $(4.2) million in Q3 2023, showing a trend towards profitability[63] User Growth and Engagement - Monthly active users (MAU) increased to approximately 76.9 million, with a consistent growth trend observed[5] - As of September 30, 2024, Life360 reported approximately 76.9 million global monthly active users (MAU), reflecting a 32% year-over-year growth[38] - Life360's global Monthly Active Users (MAU) grew by 32% year-over-year in Q3'24[42] - The company has around 2.2 million global paying circles, with a quarterly net addition of 159,000, marking an all-time record[38] - Life360 reported a significant increase in daily active users (DAU), ranking high among social networking apps in the U.S.[15] Market Expansion and Strategy - Life360's U.S. penetration rate is projected to grow from 6% in 2020 to 14% by 2024, indicating significant market expansion potential[14] - Life360's international penetration is expected to increase, with the United Kingdom projected to grow from 2% to 9% by 2024[14] - The company is targeting a total addressable market (TAM) of approximately $80 billion across various services, including family finance and auto insurance[7] - Life360 aims to expand its global presence while maintaining strong growth in existing markets, with a focus on user experience and feature parity[13] - The company is targeting high-income markets internationally, focusing on regions with a driving culture to drive subscription revenue growth[23] Product Development and Innovation - The company plans to enhance its product offerings, including roadside assistance and emergency dispatch services, to drive user engagement[8] - Life360's new product launch, including the integration of Tile devices, aims to enhance user engagement and expand market reach[27] - The company is expanding its advertising revenue stream, with initial infrastructure established to support this growth[38] Financial Efficiency and Cost Management - The company has a strong capital efficiency model, achieving $6.3 million in operating cash flow in Q3 2024, supported by a scalable tech stack[36] - Operating expenses rose to $75.0 million, a 16% increase from $64.4 million in Q3'23[39] - Operating expenses totaled $75.0 million in Q3 2024, up from $64.4 million in Q3 2023, primarily due to increased research and development costs[58] - Stock-based compensation rose to $11.5 million in Q3 2024, compared to $9.5 million in Q3 2023, suggesting increased employee incentives and retention efforts[63] Revenue Metrics - Life360's annualized monthly recurring revenue (AMR) reached $336.2 million in Q3 2024, representing a 30% year-over-year growth[36] - Average Revenue per Paying Circle (ARPPC) rose to $127.57 in Q3 2024, a 6.4% increase from $119.97 in Q3 2023[55] - Life360's advertising revenue per user (ARPU) is projected to grow significantly, with potential long-term growth in advertising revenue indicated by historical data[33] Cash Flow and Assets - Cash and cash equivalents increased to $159.0 million as of September 30, 2024, compared to $69.0 million at the end of 2023[59] - Total assets grew to $427.4 million as of September 30, 2024, up from $321.7 million at the end of 2023[59] Future Outlook and Strategic Focus - Future strategies include resource allocation and operational assessments to enhance EBITDA and Adjusted EBITDA metrics[64] - The company is focusing on non-GAAP financial measures to provide clearer insights into operational performance, excluding certain non-recurring items[64] - The adjustments in financial measures are aimed at providing investors with a clearer picture of the company's core operational results[64] - The company is transitioning to a new logistics partner, which may incur non-recurring warehouse relocation costs[63]

Revenue Performance - Subscription revenue increased by 27% to $71.833 million for the three months ended September 30, 2024[145] - Hardware revenue decreased by 24% to $11.744 million for the three months ended September 30, 2024[145] - Other revenue increased by 43% to $9.288 million for the three months ended September 30, 2024[145] - Total revenue increased by 18% to $92.865 million for the three months ended September 30, 2024[145] - Subscription revenue increased by $15.2 million (27%) in Q3 2024 compared to Q3 2023, driven by 20% growth in total subscriptions and 25% growth in Paying Circles[150] - Hardware revenue decreased by $3.8 million (24%) in Q3 2024 due to delayed product launch and increased discounts[151] - Other revenue increased by $2.8 million (43%) in Q3 2024, primarily due to a $2.0 million increase in data revenue from the A&R Placer Agreement[152] - Subscription revenue increased by $38.1 million (24%) in the nine months ended September 2024 compared to the same period in 2023[153] - Hardware revenue decreased by $3.3 million (9%) in the nine months ended September 2024, mainly due to a $4.8 million decrease in retail sales[154] - Other revenue increased by $3.6 million (18%) in the nine months ended September 2024, driven by a $2.1 million increase in data revenue[155] Profitability and Margins - Gross profit increased by 21% to $70.012 million for the three months ended September 30, 2024[145] - Hardware gross margin decreased to 5% in Q3 2024 from 26% in Q3 2023 due to increased discounts and fewer units sold[160] - Other gross margin increased to 88% due to higher data and partnership revenue while costs remained flat[165] - Hardware gross margin decreased to 14% from 20%, driven by increased freight costs and fixed hardware costs[164] Expenses - Research and development expenses increased by 18% to $29.012 million for the three months ended September 30, 2024[145] - Sales and marketing expenses increased by 19% to $30.722 million for the three months ended September 30, 2024[145] - Cost of subscription revenue increased by 29% to $10.659 million for the three months ended September 30, 2024[145] - Cost of subscription revenue increased by $2.4 million (29%) in Q3 2024, primarily due to higher technology and personnel-related costs[157] - Cost of subscription revenue increased by $7.7 million (34%) in the nine months ended September 2024, driven by higher technology expenses and premium membership costs[162] - Hardware revenue cost decreased by $0.6 million, or 2%, primarily due to reduced units sold and discontinued battery-related membership benefits[163] - Research and development expenses increased by $8.3 million, or 11%, primarily due to personnel-related and stock-based compensation costs[167] - Sales and marketing expenses increased by $6.4 million, or 9%, driven by Channel Partner commissions and other marketing spend[169] - General and administrative expenses increased by $4.5 million, or 11%, due to professional services and personnel-related costs[172] Net Income and Comprehensive Income - Net income improved to $7.689 million for the three months ended September 30, 2024, compared to a net loss of $6.541 million in the same period last year[145] - Total comprehensive income improved to $7.689 million for the three months ended September 30, 2024, compared to a total comprehensive loss of $6.558 million in the same period last year[145] Other Income and Expenses - The company recorded a $5.4 million gain from a fair value adjustment of investment in warrants[178] - Other income (expense), net increased by $2.2 million, or 649%, driven by higher dividend and interest income[180] - Provision for income taxes increased by $1.9 million due to the estimated growth in the company's annual effective tax rate[182] User and Subscription Metrics - Annualized Monthly Revenue (AMR) increased by 30% year over year to $336.2 million as of September 30, 2024[186] - Monthly Active Users (MAUs) grew by 32% year over year to 76.9 million as of September 30, 2024[187] - Paying Circles increased by 25% year over year to 2.2 million as of September 30, 2024[189] - Average Revenue per Paying Circle (ARPPC) increased by 6% year over year to $127.57 for the three months ended September 30, 2024[192] - Subscriptions grew by 20% year over year to 2.8 million as of September 30, 2024[194] - Average Revenue per Paying Subscription (ARPPS) increased by 5% year over year to $106.27 for the three months ended September 30, 2024[197] Hardware Metrics - Net hardware units shipped decreased by 24% year over year to 0.8 million for the three months ended September 30, 2024[201] - Net Average Selling Price (ASP) decreased by 4% year over year to $12.69 for the three months ended September 30, 2024[203] Cash and Financial Position - Cash and cash equivalents increased to $159.0 million as of September 30, 2024, up from $69.0 million as of December 31, 2023[205] - Net cash provided by financing activities was $72.5 million for the nine months ended September 30, 2024, primarily due to the U.S. IPO[214] - Principal commitments include obligations under operating leases for office space and other purchase commitments as of September 30, 2024[216] - Cash equivalents invested in cash and money market funds increased to $159.0 million as of September 30, 2024, up from $69.0 million as of December 31, 2023[220] Risk and Compliance - A hypothetical 10% change in interest rates would not materially impact the company's financial statements as of September 30, 2024[220] - The company's revenue is not significantly exposed to foreign currency risk as the majority of sales are denominated in U.S. dollars[221] - A hypothetical 1,000 basis-point change in the U.S. dollar's relative value would not materially affect operating results[221] - Inflation has not had a material effect on the company's business, results of operations, or financial condition[222] - Disclosure controls and procedures were effective as of September 30, 2024[224] - No changes in internal control over financial reporting materially affected the company during the three months ended September 30, 2024[225] - The company may face future regulatory investigations and inquiries related to data protection, consumer rights, and other legal matters[228] - Litigation and regulatory inquiries could have adverse impacts due to defense costs, management resource diversion, and potential operational restrictions[228]

Financial Performance - Q2'24 revenue reached $11.0 million, representing a 13% month-over-month growth[4] - Life360 reported Q2'24 total revenue of $84.9 million, a 20% increase year-over-year, with subscription revenue growing by 25% to $65.7 million[34] - Life360's annualized monthly revenue (AMR) reached $304.8 million, representing a 23% increase compared to the previous year[34] - Operating cash flow for H1 2024 was $13.9 million, demonstrating strong capital efficiency and positive operating cash flow[32] - Adjusted EBITDA for Q2'24 was $11.0 million, marking the seventh consecutive quarter of positive adjusted EBITDA[34] - Adjusted EBITDA for Q2 2024 was $11.0 million, up from $5.7 million in Q2 2023, reflecting improved operational performance[60] - Life360 expects to achieve positive Operating Cash Flow for each quarter of 2024[51] - Life360 plans to continue being Adjusted EBITDA positive on a quarterly basis going forward, aiming for consistent EBITDA positivity in 2025[51] - Life360 has updated its 2024 earnings guidance, expecting consolidated revenue of $370 million - $378 million, an increase from the previous estimate of $365 million - $370 million[51] - Core subscription revenue is projected to grow by over 25% year-over-year, upgraded from the previous guidance of over 20%[51] - The company anticipates positive Adjusted EBITDA of $36 million - $41 million, up from the previous estimate of $30 million - $35 million[51] User Growth and Engagement - Global monthly active users increased to approximately 70.6 million, a 20% year-over-year growth[4] - Life360's Core Monthly Active Users (MAU) reached 30 million, representing a 489% year-over-year growth[10] - Monthly Active Users (MAU) increased to 70.6 million in Q2 2024, up from 66.4 million in Q1 2024, representing a growth of approximately 3.2 million users[53] - Life360 ranked 4th in the U.S. social networking category on iOS by Daily Active Users (DAUs) as of June 2024[13] - The DAU/MAU ratio for Life360 is approximately 64%, indicating high user engagement compared to major social media platforms[14] - Life360's freemium model has driven significant growth, with 82% of U.S. Paying Circles utilizing the service[23] Market Opportunities and Strategy - Life360's U.S. penetration rate for paying users is approximately 10.1 million, indicating a significant market opportunity[4] - The total addressable market (TAM) for subscription services is estimated at $75 billion, with additional opportunities in pet tracking and item tracking[6] - The company is focused on expanding its product offerings, including roadside assistance and ID theft protection, to enhance user value[7] - Life360 aims to grow its audience and scale paid offerings to create new revenue streams[9] - The company is leveraging powerful network effects to drive long-term growth opportunities[9] - Life360's strategy includes meeting family needs at every life stage to strengthen relationships with members[9] - The acquisition of Tile and Jiobil is expected to enhance Life360's service offerings and market position[7] - Life360 has identified new monetization opportunities from its free user base, targeting B2B data providers and advertisers[28] - Life360's global opportunity for international penetration is significant, with current rates at 2% in the UK and 1% in Canada, projected to grow[15] Revenue Streams and Pricing - The company plans to implement price increases for subscriptions in the U.S. and internationally, enhancing revenue potential[24] - Life360's membership offerings include Silver, Gold, and Platinum tiers, with prices ranging from $0.00 to $24.99 per month[22] - The average revenue per paying circle (ARPPC) increased by 8% year-over-year to $152, driven by triple tier membership launches and price increases[42] - The average revenue per paying subscription (ARPPS) increased to $104.00 in Q2 2024, up from $102.02 in Q1 2024[53] - The company is expanding its advertising revenue stream, with an estimated global mobile advertising spend of $402,000 in 2024[30] Operational Costs and Investments - Total operating expenses on a GAAP basis for Q2 2024 were $66.0 million, compared to $59.0 million in Q2 2023, showing an increase in costs[59] - Research and development expenses on a GAAP basis for Q2 2024 were $27.0 million, up from $23.2 million in Q2 2023, highlighting increased investment in innovation[59] - Stock-based compensation for Q2 2024 was $10.8 million, compared to $9.3 million in Q2 2023, indicating a rise in employee compensation costs[60] - Sales and marketing expenses on a GAAP basis for Q2 2024 were $22.5 million, compared to $21.6 million in Q2 2023, showing a slight increase in marketing efforts[59] - The company incurred IPO-related transaction costs of $5.8 million in Q2 2024, which were not present in Q2 2023, indicating ongoing financial activities related to public offerings[64] - Total general and administrative expenses on a GAAP basis for Q2 2024 were $11.2 million, compared to $59.0 million in Q2 2023, suggesting a significant reduction in administrative costs[59] - The company is focusing on restructuring efforts, with workplace restructuring costs recorded at $1.0 million in Q2 2023, reflecting ongoing adjustments to improve operational efficiency[64] Financial Losses - The company reported a net loss of $11.0 million in Q2 2024, compared to a net loss of $4.4 million in Q2 2023[55] - Q2 2024 net loss was $11.0 million, compared to a net loss of $4.4 million in Q2 2023, indicating a significant increase in losses[60] - Adjusted profit from ordinary activities after tax for Q2 2024 was $7.8 million, compared to $5.4 million in Q2 2023, reflecting better profitability metrics[64]

Financial Performance - Subscription revenue for Q2 2024 reached $65.678 million, a 25% increase from $52.727 million in Q2 2023[145] - Total revenue for Q2 2024 was $84.863 million, up 20% from $70.788 million in Q2 2023[145] - Gross profit for Q2 2024 was $63.626 million, representing a 16% increase compared to $54.783 million in Q2 2023[145] - Net loss for Q2 2024 was $10.964 million, a 148% increase from a net loss of $4.413 million in Q2 2023[145] - Total revenue for the three months ended June 30, 2024, was $84.9 million, representing a $14.1 million, or 20%, increase compared to the same period in 2023[150] - Net loss for the three months ended June 30, 2024, was (13)% of total revenue, compared to (6)% in the same period of 2023[148] Revenue Breakdown - Hardware revenue for Q2 2024 was $11.901 million, a 3% increase from $11.585 million in Q2 2023[145] - Other revenue for Q2 2024 was $7.284 million, a 12% increase from $6.476 million in Q2 2023[145] - Subscription revenue increased by $13.0 million, or 25%, during the three months ended June 30, 2024, primarily due to a 20% growth in total subscriptions and a 25% growth in Paying Circles[150] - Hardware revenue increased by $0.3 million, or 3%, during the three months ended June 30, 2024, primarily due to fewer discounts offered[151] - The company experienced a 12% increase in other revenue during the three months ended June 30, 2024, attributed to a ramp-up of advertising revenue[152] Expenses - Operating expenses for Q2 2024 totaled $65.989 million, a 12% increase from $59.026 million in Q2 2023[145] - Research and development expenses for Q2 2024 were $27.013 million, up 17% from $23.182 million in Q2 2023[145] - Sales and marketing expenses for Q2 2024 were $24.363 million, a 4% increase from $23.347 million in Q2 2023[145] - General and administrative expenses increased by $2.1 million, or 17%, during the three months ended June 30, 2024, primarily due to higher professional and outside services costs[173] - Research and development expenses increased by 22% during the three months ended June 30, 2024, totaling $6.5 million[147] - Sales and marketing expenses increased by $1.0 million, or 4%, during the three months ended June 30, 2024, driven by a $2.1 million increase in commissions to Channel Partners[171] Profitability Metrics - Subscription gross margin decreased to 84% during the three months ended June 30, 2024, down from 88% in the same period of 2023[159] - Hardware gross margin increased to 19% for the six months ended June 30, 2024, up from 16% for the same period in 2023[166] - Average Revenue per Paying Subscription (ARPPS) increased by 6% to $104.00 for the three months ended June 30, 2024, compared to $97.83 for the same period in 2023[187] - Average Revenue per Paying Circle (ARPPC) for the three months ended June 30, 2024, was $125.96, a 6% increase from $119.25 in 2023[193] User Metrics - Monthly Active Users (MAUs) grew by 31% to 70.6 million for the three months ended June 30, 2024, up from 54.0 million in the same period in 2023[187] - Total subscriptions increased by 20% to 2.7 million for the three months ended June 30, 2024, compared to 2.2 million in the same period in 2023[187] - The number of Paying Circles increased to approximately 2.0 million as of June 30, 2024, representing a 25% year-over-year growth from 1.6 million in 2023[191] - Total paid subscribers across Life360, Tile, and Jiobit brands reached approximately 2.7 million as of June 30, 2024, a 20% increase from 2.2 million in 2023[195] Cash Flow and Financial Position - Net cash provided by operating activities for the six months ended June 30, 2024, was $13.9 million, compared to a net cash used of $5.5 million in 2023[209] - As of June 30, 2024, cash and cash equivalents totaled $160.8 million, up from $69.0 million as of December 31, 2023[203] - The company completed its U.S. IPO on June 6, 2024, raising net proceeds of $93.0 million after underwriting discounts and commissions[203] Risks and Regulatory Matters - The company anticipates ongoing regulatory inquiries related to data protection and consumer rights, which may lead to future litigation[228] - The company has not entered into any active hedging arrangements for foreign currency risk, but may consider doing so in the future[220] - The company does not believe inflation has materially affected its business, but significant inflationary pressures could harm its results[222] Internal Controls - As of June 30, 2024, the company's management concluded that its disclosure controls and procedures were effective[224] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended June 30, 2024[225]

10 May 2024 Life360 reports Q1 2024 results San Francisco area-based Life360, Inc. (Life360 or the Company) (ASX: 360) today reported unaudited financial results for the quarter ended March 31, 2024. Life360 Co-founder and Chief Executive Officer Chris Hulls said: "Life360's Q1'24 results showed continued momentum, with net Paying Circles additions nearly doubling to 96 thousand from 54 thousand in Q4'23, achieving a new first quarter record. In addition, our efforts in relation to both our free members and ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-56424 Life360, Inc. (Exact name of registrant as specified in its charter) Delaware 26-0197666 (State or ot ...

Financial Performance - Subscription revenue for Q3 2023 reached $56.6 million, a 45% increase from $39.0 million in Q3 2022[161] - Total revenue for Q3 2023 was $78.6 million, up 38% from $57.2 million in Q3 2022[161] - Hardware revenue increased by 33% to $15.5 million in Q3 2023, compared to $11.7 million in Q3 2022[161] - Gross profit for Q3 2023 was $57.9 million, representing a 48% increase from $39.2 million in Q3 2022[161] - The net loss for Q3 2023 was $6.5 million, a 69% improvement compared to a net loss of $21.1 million in Q3 2022[161] - Total revenue for the three months ended September 30, 2023, was $78.6 million, a 38% increase from $57.2 million in the same period in 2022[166] - For the nine months ended September 30, 2023, subscription revenue increased by $53.1 million, or 49%, compared to the same period in 2022[168] - Total revenue for the nine months ended September 30, 2023, was $217.6 million, a 39% increase from $157.0 million in the same period in 2022[168] Expenses - Total operating expenses for Q3 2023 were $64.4 million, a 7% increase from $60.4 million in Q3 2022[161] - Research and development expenses remained flat at $24.6 million in Q3 2023, compared to the same period last year[161] - Sales and marketing expenses increased by 6% to $25.7 million in Q3 2023, up from $24.2 million in Q3 2022[161] - General and administrative expenses rose by 22% to $14.1 million in Q3 2023, compared to $11.6 million in Q3 2022[161] - Research and development expenses decreased by $2.4 million, or 3%, during the nine months ended September 30, 2023, primarily due to a $2.3 million reduction in contractor spend[182] - Sales and marketing expenses rose by $3.0 million, or 4%, during the nine months ended September 30, 2023, mainly due to a $5.6 million increase in marketing expenses[184] - General and administrative expenses increased by $2.1 million, or 6%, during the nine months ended September 30, 2023, attributed to a $5.3 million gain on revaluation of contingent consideration from the Jiobit acquisition in the prior year[188] Revenue Metrics - Subscription gross margin improved to 85% during the three months ended September 30, 2023, up from 80% in the same period in 2022[172] - Average Revenue per Paying Circle (ARPPC) for the three months ended September 30, 2023, was $119.97, representing a 28% increase year-over-year from $93.55[203] - Average Revenue per Paying Subscription (ARPPS) for the three months ended September 30, 2023, was $101.33, reflecting a 30% increase year-over-year from $78.03[212] - Annualized Monthly Revenue (AMR) reached $259.1 million as of September 30, 2023, representing a 41% increase year-over-year[195] User Metrics - Monthly Active Users (MAUs) grew to approximately 58.4 million as of September 30, 2023, a 24% increase from 47.0 million in the prior year[196] - The number of Paying Circles increased to approximately 1.7 million as of September 30, 2023, reflecting a 17% year-over-year growth[198] - The number of paid subscribers for Life360, Tile, and Jiobit brands increased to approximately 2.3 million as of September 30, 2023, a 14% increase year-over-year from 2.1 million[206] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were $61.8 million, down from $75.4 million as of December 31, 2022[217] - Net cash used in operating activities for the nine months ended September 30, 2023, was $1.4 million, significantly improved from $54.9 million in the same period of 2022[223][224] - Net cash used in investing activities for the nine months ended September 30, 2023, was $1.3 million, a substantial decrease from $114.1 million in the prior year, primarily due to the Tile Acquisition[225] - Net cash used in financing activities for the nine months ended September 30, 2023, was $24.0 million, compared to $3.5 million in the same period of 2022[226][227] Deferred Revenue and Liabilities - Deferred revenue as of September 30, 2023, was $35.0 million, up from $32.8 million as of December 31, 2022, indicating growth in future revenue recognition[222] - The company reported $3.8 million in liabilities measured at fair value as of September 30, 2023, compared to $7.0 million as of December 31, 2022[234] Regulatory and Compliance - The company expects to continue facing regulatory inquiries related to data protection and consumer rights, which may impact its operations[248] - Future litigation may be necessary to defend against claims related to regulatory, commercial, and intellectual property matters, which could impact operational practices[248] Internal Controls - Management identified material weaknesses in internal control over financial reporting related to IT general controls, which could lead to undetected misstatements[242] - The company is implementing measures to remediate identified control deficiencies, including enhancing IT controls and providing training[243] - The company concluded that its disclosure controls and procedures were not effective as of September 30, 2023, due to identified material weaknesses[239] - Management acknowledges that disclosure controls and procedures cannot prevent all errors and fraud, highlighting inherent limitations in control systems[246]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ Title of each class Trading Symbol(s) Name of each exchange on which registered None. None. None. FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-5642 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was $228.3 million, a significant increase from $112.6 million in 2021 and $80.7 million in 2020, representing a year-over-year growth of 103.0% from 2021 to 2022[16] - Net loss for the year ended December 31, 2022, was $91.6 million, compared to a net loss of $33.6 million in 2021 and $16.3 million in 2020, indicating an increase in losses[16] - Revenue, excluding Tile and Jiobit revenue, has increased each quarter since 2016, but future growth is uncertain[147] Business Model and Strategy - Life360 operates under a "freemium" model, with paid memberships ranging from $7.99 to $24.99 per month, offering various premium safety services[20] - The company plans to grow its member base in new and existing markets and increase monetization through disciplined expansion into new use cases[17] - The company aims to leverage word-of-mouth referrals to drive new member growth and plans to invest in marketing and brand awareness initiatives[19] - Life360 operates under a "freemium" model, offering a free app while monetizing through paid subscriptions, which is critical for revenue growth[78] Product Offerings - The acquisition of Jiobit and Tile was aimed at creating a comprehensive cross-platform location tracking solution, enhancing the Life360 service offerings[14] - Jiobit devices are priced at $129.99, with subscription plans ranging from $8.99 to $14.99 per month, depending on the contract duration[26][28] - Tile devices are sold at retail prices ranging from $14.99 to $34.99, with additional bundles available at higher price points[24] Workforce and Culture - As of December 31, 2022, Life360 had approximately 400 full-time employees and 200 contractors, with a commitment to diversity in the workforce[37] - The company’s ability to maintain its corporate culture is critical for future success, especially as it continues to expand[140] - The company’s future success depends on attracting and retaining highly skilled personnel, with competition for talent being intense[136] Research and Development - Research and development expenses were $102.5 million, $51.0 million, and $39.6 million for the years ended December 31, 2022, 2021, and 2020, respectively, indicating a significant investment in enhancing customer offerings[47] - The company is focused on improving its technology infrastructure and systems to support new products and market expansion[150] Risks and Challenges - The company faces risks from competition in the digital consumer subscription products market, which may impact its ability to attract and retain members[72] - Economic downturns or uncertainties may adversely affect consumer discretionary spending and demand for the company's products and services[73] - The company is subject to numerous data privacy and security obligations, including the CCPA and EU GDPR, which may increase compliance obligations and exposure for noncompliance[62] - The company has identified a material weakness in internal controls, potentially affecting the accuracy and timeliness of financial reporting[74] - The company may experience challenges in expanding its member base outside the United States, which could limit its growth potential[91] Marketing and Customer Engagement - Attracting members requires considerable marketing expenditure, and evolving consumer behavior may affect the effectiveness of traditional marketing channels[102] - The company generates a portion of its revenue through lead generation offerings, which may be impacted by competition and relationships with advertising partners[164] International Expansion - The company faces risks related to international expansion, including operational and compliance challenges, foreign currency fluctuations, and differing tax laws[131] - As of December 31, 2022, international members represented over 36% of total Monthly Active Users (MAUs) and accounted for approximately 8% of revenue[130] Compliance and Regulatory Environment - The company is subject to stringent data privacy and security laws, which could lead to regulatory actions and significant penalties if not complied with[174] - Non-compliance with privacy laws such as the CCPA could result in civil penalties of up to $7,500 per violation[176] - The company may face significant fines under the EU GDPR, with penalties reaching up to 20 million Euros or 4% of annual global revenue[179] Supply Chain and Manufacturing - The company relies on a limited number of suppliers and manufacturers, and any loss could negatively impact operations[72] - The primary manufacturer’s facilities are located in the PRC and Malaysia, and any disruptions in these regions could adversely affect the company's operations[126] - The company relies significantly on third-party publishers and platforms for the distribution and marketing of its products, which could adversely affect its business if these partners change their policies[103] Financial Outlook - The company expects existing cash and cash equivalents from subscription sales to meet anticipated cash needs for at least the next 12 months[167] - Future capital requirements will depend on subscription growth rates, renewal activity, and the introduction of new products and services[167] Cybersecurity and Data Privacy - Company processes sensitive data and faces threats from cyber-attacks, including ransomware, which could disrupt operations and lead to reputational harm[191] - Increased risks from remote work and reliance on third-party service providers could introduce new cybersecurity vulnerabilities[196][197]